If you decide to withdraw your money before the end of the term, you’ll usually need to give advance notice to your financial institution. This can impact the interest rate you are offered. Depending on your preference, you may be able to choose for interest to be paid fortnightly, monthly, semi-annually, annually or at maturity (which means the end of the term). Many term deposits let you choose when you want interest to be paid. Term deposits generally suit people who are looking for a lower-risk investment and want certainty of returns. In return, you can earn a fixed rate of interest on your money.
A term deposit is an account that locks away and invests your money for a fixed period of time, usually between one month and five years.
