Have you heard people using the words ‘term deposit’, ‘term deposit investment’, or ‘fixed deposit’ interchangeably? If you’re confused, you’re not alone, so let us explain. There is no difference between a term deposit and a fixed deposit. They’re both the same thing: a low-risk way to invest and grow your savings.
A term deposit is a low-risk investment option that earns you interest over a fixed period of time. Interest is paid in regular intervals throughout your chosen investment period. The longer you invest, the more interest you will earn.
Think of a term deposit as another type of savings account. With a regular savings account, interest is calculated at a variable rate. This means the rate might change. The rate for a term deposit remains the same, and will not be affected by changes in market interest rates.
When you apply for a Term Deposit, you lock in a great rate for the chosen term of your investment.
Our competitive interest rates and range of fixed term options give you the flexibility to choose the length of your investment. For more information on how we can help, fill out our online application or call 0800 229 943 to speak with our friendly team today.