Term Deposit Alternatives: Peer to Peer Investing By comparison, a savings account allows you to withdraw money at any time. This is usually a loss of interest rather than any fee taken you’re your term deposit investment.
If you need to access your money, a penalty will be applied. Withdrawals: Term deposits are, as their name states, fixed for a ‘term’.Savings accounts, in most cases, offer lower interest rates than term deposits because you can access your money at any time.
A savings account offers a floating interest rate which means it can change at any time. Interest rates will usually be higher the longer the term is, as banks pay more for the certainty of re-lending your money for longer. Interest rates: A term deposit offers a fixed interest rate for the life of your investment.There are two key differences, with term deposits and savings accounts offering unique advantages.
