As a rule of thumb, higher interest rates tend to result in a greater rate of return on your investment. The interest rate plays a crucial role in determining the overall earnings you will receive on your deposit throughout the fixed term. One of the primary features to prioritise when evaluating term deposits is the fixed interest rate offered. Here are some of the main features to look for in a term deposit: Term deposit interest rates When considering a term deposit, it's important to keep an eye out for several key features that can impact your investment. These long term savings accounts offer guaranteed interest earnings, which makes them a good match for cautious investors who want to keep things steady and protect their cash. Term deposits are often popular among individuals and businesses aiming for a safe and secure investment that comes with a fixed payout over a set period.

In general, a term deposit serves as a relatively low-risk investment option, generally suitable for those who don't need immediate access to their funds.

These penalties could take the form of a breakage fee or a forfeiture of a portion or all of the interest you might have earned on the deposited amount. Additionally, some banks and term deposit providers may impose financial penalties if you opt to withdraw funds from the term deposit before the full term completes. Many term deposit providers require an advance notice of about a month before you can access the deposited funds. However, at the conclusion of the term, you have the option to withdraw the funds or renew the deposit for another term. Once you have made the deposit, accessing the funds before the agreed-upon term ends may not be convenient. This method of banking allows you to determine in advance the exact interest you will earn, irrespective of market fluctuations. Term deposits work much like savings accounts or investments, but with a few key differences.īy opening a term deposit, you can securely deposit a sum of money in a bank and earn a predictable amount of interest over a set period, known as the term or maturity.

Banking term deposit rates