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Do term deposit rates pay more interest than a conventional savings account?
Wiki User
∙ 12y ago
"Yes, term deposit rates do pay more interest than a conventional savings account because you basically lock in your money to this account for a fixed amount of time, assuring your bank that you will not withdraw the money in the set amount of time."
Wiki User
∙ 12y ago
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What is a savings or deposit account?
It is a bank account where a person will make regular, monthly savings to build up capital. The savings or deposit account will not normally come with a card or cheque book and the savings in it will attract a higher rate of interest than a normal bank account. However you lose this high rate of interest if you withdraw your money suddenly or before a certain period,
What is meant in by term deposits in banking?
The meaning of a Term Deposit in banking is referring to a savings account or a certificate of deposit. This particular savings account or certificate of deposit pays at a fixed rate of interest until given a maturity date.
Which is a type of savings account that is designed to accrue interest for a specific period of time?
certificate of deposit
What is a compound interest savings account?
Its where your savings account earns interest on the interest.
What is one disadvantage of having money in certificate of deposit versus a savings account?
It earns a far higher rate of interest than your savings account. the rate of interest on CD's range from 6% to 10% depending on the duration but the interest on savings accounts is only 3 - 4 %
What is the purpose of a business deposit account?
Business deposit accounts are also known as business savings account where one can deposit an amount of money as savings for one's business. Most savings accounts will also offer interest rates.
What is a savings or deposit account?
It is a bank account where a person will make regular, monthly savings to build up capital. The savings or deposit account will not normally come with a card or cheque book and the savings in it will attract a higher rate of interest than a normal bank account. However you lose this high rate of interest if you withdraw your money suddenly or before a certain period,
What is a certificate of deposit?
When you put money in a savings account, you can draw it out at any time. In a certificate of deposit, you agree to leave it in the bank for a certain period of time. They pay slightly higher interest because they know that money will be there for 3 months, 6 months, 1 year, etc. If you draw it out early, they reduce your interest.
What is meant in by term deposits in banking?
The meaning of a Term Deposit in banking is referring to a savings account or a certificate of deposit. This particular savings account or certificate of deposit pays at a fixed rate of interest until given a maturity date.
What is the purpose of a savings?
A Savings Account is a type of account that is designed to promote savings among the general public. You can deposit and withdraw money from this account but at the same time the bank offers you an interest on the money deposited into the account.
What is the difference between a savings account and a certificate of deposit?
In a regular savings account, the funds are always available for withdrawl. As a result, savings accounts generally have a low rate of interest. A certificate of deposit is an investment for a specific amount of time. The funds are not available until the certificate has matured, therefore, it has a slightly higher rate of interest than a savings account.
Which of these is a type of savings account that is designed to accrue interest for a specific period of time?
certificate of deposit
Which is a type of savings account that is designed to accrue interest for a specific period of time?
certificate of deposit
What the the advantages and disadvantages of a certificate of deposit?
Certificates of deposit are a good idea because they are a high interest deposit and offer a higher interest rate than a savings account and treasury bills and notes.
What is a compound interest savings account?
Its where your savings account earns interest on the interest.
What is one disadvantage of having money in certificate of deposit versus a savings account?
It earns a far higher rate of interest than your savings account. the rate of interest on CD's range from 6% to 10% depending on the duration but the interest on savings accounts is only 3 - 4 %
Is it true or false that if you open a savings account you can increase your money?
True - If you keep depositing your monthly savings regularly into your savings account. False - If you don't deposit any money into your account. Money in your savings account does not increase automatically. Banks will credit a small interest amount every quarter/year into your account but that wouldn't increase your balance significantly unless you deposit funds into your account.
