Some bank term deposit also offer a dual currency deposit, which allows you to convert your term deposit to a foreign currency before it matures at a lower rate of interest. This option is particularly attractive for customers who expect to travel abroad frequently.
What is the benefit of term deposit?
If you are looking to invest a large amount of money, a bank may offer you a cumulative term deposit, which repays your principal and interest at the end of the term. This type of investment is a good choice for people who want to build a large savings account quickly.
Typically, you can’t withdraw your funds from a term deposit before the term ends without paying a penalty. This is why it’s important to understand the pros and cons of term deposits before deciding whether to invest in one.