You’ll need to put away your money for a set amount of time, but you may be able to get a higher rate of interest compared to a normal savings account.
| Advantages | Disadvantages |
|---|---|
| Your savings will earn interest for a fixed amount of time, at a fixed rate, so you can see how it will grow. | If interest rates rise, your rate will remain the same for the duration of the agreed term. |
| You may be able to reinvest the interest or the initial amount you saved when the term deposit expires. | There may be a minimum deposit amount you need to open the account. |
| You’ll be discouraged from dipping into your savings, which can help reduce the temptation to do so. | There may be fees or charges for accessing your money early. |
| This is a minimal risk product as the interest rate is fixed. | You will not be able to add to your term deposit account once it’s opened. |
| Advantages | Your savings will earn interest for a fixed amount of time, at a fixed rate, so you can see how it will grow. | Your savings will earn interest for a fixed amount of time, at a fixed rate, so you can see how it will grow. |
|---|---|---|
| Disadvantages | If interest rates rise, your rate will remain the same for the duration of the agreed term. | If interest rates rise, your rate will remain the same for the duration of the agreed term. |
| Advantages | You may be able to reinvest the interest or the initial amount you saved when the term deposit expires. | You may be able to reinvest the interest or the initial amount you saved when the term deposit expires. |
| Disadvantages | There may be a minimum deposit amount you need to open the account. | There may be a minimum deposit amount you need to open the account. |
| Advantages | You’ll be discouraged from dipping into your savings, which can help reduce the temptation to do so. | You’ll be discouraged from dipping into your savings, which can help reduce the temptation to do so. |
| Disadvantages | There may be fees or charges for accessing your money early. | There may be fees or charges for accessing your money early. |
| Advantages | This is a minimal risk product as the interest rate is fixed. | This is a minimal risk product as the interest rate is fixed. |
| Disadvantages | You will not be able to add to your term deposit account once it’s opened. | You will not be able to add to your term deposit account once it’s opened. |
You can usually choose the duration of the term deposit to suit your savings goals. For example, with an HSBC Term Deposit Account, you can choose from 1 to 36 months.
Please note, you need to be an existing HSBC UAE customer to open an HSBC Term Deposit Account.
As your savings will be locked away for an agreed length of time, it’s important to make sure you won’t need to access them. If you do, you may lose the interest.
You should be able to check if any fees and charges apply in the bank’s Schedule of Services and Tariffs.
Having another savings account that you can access without a fee for withdrawing money could help in case you need money unexpectedly. Creating a budget can give you a clearer picture of your spending and how much you’re able to save.
At the end of the term, known as the maturity, you may be able to reinvest the amount you saved plus the interest, or withdraw your money.
Before opening a term deposit account, it’s important to be aware of the terms and conditions and check you’re eligible before you apply.
