Time Deposit Guides
If you have some savings in the bank which you want to grow, one of the safest ways to do so is by investing in time deposits, which are also known in other countries as term deposits and fixed deposits.
Time deposits allow you to lock away your money with the bank for an agreed amount of time and in return you will get fixed interest rate for the given time period, usually this rate is higher than regular savings accounts. The catch is that you will not be able to withdraw your money during the time period and if you do you might receive a financial penalty from the bank for withdrawing before the term finished.
Regular bank accounts or current accounts will provide you with little or no interest, so when you factor inflation into the equation your money is actually loosing value. The problem is we often work very hard for our money so many of us don’t like riskier investments such as the stock market.
This is when a time deposit can be a great financial tool to help you build up your savings as they are extremely low risk and can offer some good interest rates.
How does a time deposit work?