What is a Term Deposit?

When a term deposit is purchased, the client understands that the money can only be withdrawn after the term has ended or by giving a predetermined number of days’ notice.

Basically, you give a bank a sum of money for an agreed upon length of time, and at the end of that time you can take your money back with the interest you made over that amount of time. If you want your money before the time ends, you must give notice and pay cancellation fees.

After Choosing the length of the term, you choose repayment terms. Ex: If your length is 1 year, you can choose to have your interest paid to you each month, every 3 months, every 6 months, or only at the end of the year.