Bank Accounts

Fixed term deposits arrangements – a real alternative to the day money account?



Fixed term deposits are money which a consumer of a bank for a certain time makes available. The period mostly applies more than 30-60 days, however, can be also longer. Besides, the sum can vary, according to supplier between few hundred and several ten thousand euros. With a fixed term deposits account the customer has to follow some rules. He may not dispose of the money before the term, hence, one calls fixed term deposits also time deposit. Nevertheless, on a day money account the consumer does not have daily access, on a fixed term deposits account.

The fixed term deposits account bears more interest to the owner as a rule substantially than it is the case with a day money account. The interest rate is guaranteed, on this occasion, and does not vary any more for the whole period in which the money is put on. Speculated the customer that it comes to interest to be sunk is he with a fixed term deposits account on the sure side. If he expects, nevertheless, higher interest, a day money account would be the better alternative.
If the investment period has run off, the agreed fixed term deposits interest is paid. Moreover, the owner has the possibility, that to extend money again as fixed term deposits. Alternatively he can also allow to pay the credit or invest it easily in another arrangement.
If a fixed term deposits account for a longer term is closed, the possibility of higher interest also exists. Then the interest is ordinarily paid once a year. Mostly the customer profits from the terms which go more than 12-24 months.
The day money and fixed term deposits interest is differently high only minimally, hence, both products are similar very much. Because the fixed term deposits account gives, however, a guarantee about constant height of the fixed term deposits interest, one has to plan the possibility with a fixed term deposits account around something better.
Who is interested in a finance product, should find out before absolutely in detail which option is the most favorable for him. If he has a sure solvency, the arrangement is worthwhile in fixed term deposits certainly, however, he must dispose again at short notice of certain investments, a day money account should show the better alternative. On many on-line platforms the user has to find the possibility with the help of a fixed term deposits calculator the individual solution best for him concerning fixed term deposits arrangement and to investigate.

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