Term deposits are a safe investment choice for those with a little money they can do without. It is very tempting to spend money, so if you find the temptation hard to resist, putting your money into a term deposit can protect it. You will not be able to withdraw it until the term is up. Or in some cases, you can withdraw it, or part of it, but you must pay a fee to do so. This is often enough to make you change your mind and do without for a bit longer.

Term deposits offer a higher rate of interest than other savings accounts. This interest rate is guaranteed for the duration of the term, so it does not fluctuate as in other accounts. You can choose the length of the term, with options of a month to some years. You can usually choose whether the term deposit interest is compounded or not.

A term deposit with compounding interest is really excellent, especially if the interest is paid monthly or quarterly. This means that you can earn interest on your interest, so you are virtually getting a double bite of the interest cherry. Read all the terms carefully to make sure you know exactly what is offered. And remember to ask yourself if you can live without the money for the length of the term.