What is a term deposit?
Who offers term deposits?
Government guarantee on deposits
What are the interest rates on term deposits?
How is interest on term deposits calculated?
Do term deposits charge fees?
What features do term deposits offer?
How do you open a term deposit?
What are the pros & cons of term deposits?
How do you choose the right term deposit?
What is a term deposit?
Term deposits (also known as TDs) are a basic low-risk investment product. With a term deposit, you deposit a lump sum of money in a financial institution for a set term in exchange for a fixed rate of interest. When the term is over, you receive the interest on the amount you deposited.
Different term deposits can have fixed terms between one month and five years. The end of the term is known as ‘maturity’.
Term deposits are popular among risk-averse investors who want a near-guaranteed return on their investment.