Fixed Deposit Account, also referred to as Term Deposit Account, requires you to keep the amount deposited in the account for a term that can vary between 1 / 3 / 6 months and 5 years.
What is the rate of interest on a Fixed Deposit Account?
Most banks require that you deposit a minimum amount in order to open a Fixed Deposit account. The rate of interest paid varies depending on the term of the deposit. Remember that the bank quotes the interest per year. Once a term deposit expires you may request automatic renewal of the term deposit but this does not mean that the interest rate will remain the same, so it is important that you check the interest rate prior renewing the term deposit.
Can I withdraw my money from a Fixed Deposit Account?
There are very few instances when a bank may allow you to withdraw your money from a fixed deposit account before it reaches the term. However, if you are granted access to withdraw your money, penalties may apply.
Always check and familiarise yourself with all the terms and conditions that apply before opening the account.
