Fixed deposit explained

The fixed deposit is an investment of money, which is deposited in a special account for a certain period of time. The money works by itself at a fixed interest rate.

Guidebook Content:

  1. Online calculator fixed deposit
  2. What is time deposit?
  3. Advantages & Disadvantages Fixed Deposit

The most important facts about fixed-term deposits

  • Investment of money in the form of deposits
  • Deposit over a specified period of time
  • Special account for time deposit
  • No access options within the time period
  • Fixed but low interest rate

Fixed Deposit Calculator

Fixed-term deposits at a glance


What is time deposit?

Time deposit is an investment in the form of financial deposits for a certain period of time into a special account, which cannot be freely disposed of before the end of the period. The duration of a time deposit can vary from a few months to up to 10 years, depending on the provider.

During this time, no deposits or withdrawals are possible.

Fixed-term deposits at a glance:

  • Investment of money in the form of deposits
  • Deposits for a specific period
  • Deposits to a special account
  • Deposits & withdrawals not possible during this time

Advantages time deposit: Compound interest & security

In addition to the high security offered by the time deposit, it also has the advantage that you benefit from the so-called compound interest effect.

All advantages at a glance:

  • Flexible investment period
  • Low cost
  • Fixed interest rate
  • Compound interest
  • High security

However, the time deposit also brings disadvantages. For example, the low availability plays an important role in the decision to conclude the investment. In addition, many time deposit offers are linked to a minimum deposit.

All disadvantages at a glance:

  • Little interest
  • Low availability
  • Minimum deposit given
  • Fixed amount cannot be changed

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