Advantages of a term deposit-
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With a term deposit you receive a set rate of return/profit at the end of the period.
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A term deposit is a secure investment the money is always returned at the end of the period no matter what.
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If the interest rates of a bank fall you still receive the interest for the rate at which the investment was made.
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You only need a small sum of money to invest in a term deposit, some terms range around only $1,000- $10,000.
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You can pick how long you want to deposit your money so it best suites your needs.
Disadvantages of a term deposit-
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If interest rates go up during the term of the deposit you are locked to the rate at which you applied at
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You are unable to get your money at during the term, if you do withdraw you money a large penalty is applied
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You might miss an opportunity to make a big purchase on something or invest in a better deal, because your money will be non-withdrawable
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If you withdraw early from a term deposit, you are charged a large fee
The advantage is that if the rates go down you are not locked into a high rate for a long term. The disadvantage is that if the rates go up you are not locked into the lower rate for a long term.
A time deposit (also known as a term deposit, particularly in Canada, Australia and New Zealand; a bond in the United Kingdom) is a money deposit at a banking institution that cannot be withdrawn for a certain "term" or period of time. When the term is over it can be withdrawn or it can be held for another term. Generally speaking, the longer the term the better the yield on the money. A certificate of deposit is a time-deposit product. A Certificate of Deposit (CD) can be traded, while a time deposit cant be traded because it is linked to a bank account.
The definition of term deposit rate is a deposit held in a financial institute at a fixed rate. Such as a cd that banks offer or bonds.
I think for long term investing you want to find nonvariable investments to put your money in.
If you withdraw early from a term deposit, you are charged a large fee
A short term investment could be something that you would use in the next couple months or years, such as a Certificate of Deposit. A long term investment would be something that you may not be using until your retirement.
Advantage: Large cash injection. Disadvantage: In the long term it is more expensive.
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Advantages of long term investments include the possibility of higher returns due to compounding, reduced transaction costs, and the potential for riding out short-term market fluctuations. Disadvantages include tying up funds for a longer period of time, limited liquidity, and uncertainty about future market conditions.
The advantage is that if the rates go down you are not locked into a high rate for a long term. The disadvantage is that if the rates go up you are not locked into the lower rate for a long term.
Advantages of getting your hair relaxed is that it will look better and be more manageable, these are short term though. The disadvantage of this change is that you are putting chemicals on your hair that will damage it and in the long term be less manageable until you cut it off.
A time deposit (also known as a term deposit, particularly in Canada, Australia and New Zealand; a bond in the United Kingdom) is a money deposit at a banking institution that cannot be withdrawn for a certain "term" or period of time. When the term is over it can be withdrawn or it can be held for another term. Generally speaking, the longer the term the better the yield on the money. A certificate of deposit is a time-deposit product. A Certificate of Deposit (CD) can be traded, while a time deposit cant be traded because it is linked to a bank account.
I think for long term investing you want to find nonvariable investments to put your money in.
The definition of term deposit rate is a deposit held in a financial institute at a fixed rate. Such as a cd that banks offer or bonds.
Term deposit rates is the amount of money paid in interest at specific date for a specific amount of money placed in the Term Deposit. Banks calculate term deposit rates for example at 35% interest of a deposit of å£10,000 gives an added value å£35 at the end of the year.
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