| term deposit refers to the depositing of a certain sum | | | | fairly high interest rate is the attraction here. This is an |
| of money at a bank where the depositor is able to | | | | effective way of locking away savings so that it will |
| earn an interest on a monthly basis or whenever the | | | | not be spent unnecessarily. |
| term matures. The term is fixed as well as the rate of | | | | Another advantage apart from earning an interest on |
| interest that is paid unless the investor negotiates with | | | | the term deposit is the ability of the depositor to |
| the bank for getting the interest on a monthly basis. | | | | secure a loan against the fixed deposit. This way the |
| This is one way that many people are able to earn an | | | | depositor can even finance a small business as the |
| income for themselves by investing their money. When | | | | interest rate that is charged for such a loam is only |
| money is deposited for a period of time it can only be | | | | slightly higher than what the depositor would be earning |
| withdrawn at the end of the term agreed upon by the | | | | from the initial deposit. |
| bank and the depositor. The guaranteed return at a | | | | |