Bank Accounts

The advantages and disadvantages of Fixed Term Deposit



Time deposit unites finance products which have in common everybody something. A firm amount is put on for a settled period. The so invested money is not available for the whole timed period. Time deposit the fixed term deposits which are put on with a firm and guaranteed interest rate are also often called. One can understand by time deposit, however, also the so-called notice money. Notice money is an arrangement where one can access the invested amount only after a notice.
With time deposit one has the choice between notice money or fixed term deposits. With both investment forms the interest is fixed before guaranteed. Even with variations in the interest area, the interest with the time deposit remains guaranteed. If the owner on a sinking level of the interest speculates, he lies with a party or notice money account exactly properly. If the interest is in future, nevertheless, higher, a day money account would be the better alternative.
With the time deposit the interest is tipped out yearly, nevertheless, one can dispose only at the end of the term of the credit. The interest with the time deposit do not differ any more so much from the interest of the day money and the time deposit is valid, however, actually, only as interesting if one liked to collect the guaranteed high interest with falling interest still for a longer period.
Time deposit is ordinarily extremely unadaptable, because one has to reach no possibility near the arrangements without the before festival-certain term was finished. The only exception forms here the notice money with which one himself can determine the term. Still one must keep to end of the term a certain term of notice to receive the credit. The time deposit is tied.
However, the time deposit has the advantage of a bigger security compared with other finance products. The interest is firm and guaranteed, hence, one has an overview about the profit and the terms. Moreover, the time deposit enjoys a complete insert protection and is secured in addition to the state insert protection still by insert protection fund.
Unfortunately, the time deposit registers declining interest, while day money wins more and more in popularity. The bigger flexibility to the investors is more important here than guaranteed interest. If one needs, nevertheless, a big planning security, e.g., with very big investments or liked to be able to count on terms, the time deposit is an excellent finance product.

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