What Is a Bank Term Deposit?
A bank term deposit is a low-risk, interest-bearing savings account that pays interest until a set date, also known as the maturity date. In addition to being a safe way to save, these products can be a good option for investors looking for higher returns than other types of savings accounts.
What is term deposit in bank?
Term deposits can help you save for long-term goals, like retirement or college tuition fees. Several types of term deposits offer flexible terms and different interest rates, so you can tailor your investment to suit your needs.
The most common term deposit is a certificate of deposit (CD), which offers a fixed interest rate for the life of your CD. But there are many other options for saving money, including index- or equity-linked term deposits, which track stock market performance, and escalating term deposits, which increase your interest rate over time.