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Term Deposits Hints And Tips

Term deposits differ from normal savings accounts because they offer fixed rates for fixed terms. As with many financial products, there are pros and cons to consider.

Highest deposit rates normally lie around 1 year terms, with interest rates decreasing as deposit terms exceed 1 year.

While a term deposit can be a safe, reliable way to make your money grow,the drawback lies in the penalty for early withdrawal. There is also the chance you may miss out on the opportunity to earn higher interest rates in the event that savings rates continue to climb during the fixed term.

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