Term savings involve depositing a certain amount of money for a specific period of time, which can vary from a few months to several years. During this period, the funds remain non-withdrawable, meaning they cannot be withdrawn without paying a penalty as per the agreement. At the end of the period, the deposit is returned with a high rate of interest agreed upon at the time of investment.

On a time deposit, an individual or institution can earn interest higher than the normal interest rate by depositing money with our association and keeping it in a closed account, according to the agreement. This is a safe way to grow money. It means that the money cannot be spent before the agreed term and you can earn interest while it is still there.

One of the biggest advantages of a fixed term deposit is the higher interest rate it offers compared to regular savings accounts. This ensures that your savings grow faster, giving you better returns over time. Moreover, it is a low-risk investment option as the deposit is protected and the returns are fixed, giving investors peace of mind.

Additionally, fixed-term deposits help build savings that are set aside for better returns. Since the funds are locked in for the term of the agreement, it ensures that the money grows continuously, preventing impulse withdrawals. This makes it a good tool for those who want to save for a specific period of time to meet future needs, such as buying a property or funding an education.

Although early withdrawal is generally possible, it is not encouraged. Withdrawing funds before the agreed-upon date may result in penalties or reduced interest earned. Depending on your agreement with the association, fees or a lower interest rate may apply if you choose to use your funds early.

It is important to understand the specific rules and conditions set by the association before you invest in a term deposit. In most cases, the longer you can leave your deposit untouched, the higher the interest rate you will receive, making it a better option for long-term savings goals.

Fixed term deposits can be opened by individuals and institutions, offering flexibility for different types of savers. This savings option is ideal if you are looking to save for personal goals, such as building an emergency fund or saving for retirement, or if you represent an institution that needs a stable investment for additional funds.

It offers a great opportunity for both personal and business financial planning. Individuals can benefit from better savings rates than those available from regular savings, while businesses can use term deposits to reduce idle funds that are not needed for daily operations.