These penalties could take the form of a breakage fee or a forfeiture of a portion or all of the interest you might have earned on the deposited amount.

Additionally, some banks and term deposit providers may impose financial penalties if you opt to withdraw funds from the term deposit before the full term completes. Many term deposit providers require an advance notice of about a month before you can access the deposited funds. However, at the conclusion of the term, you have the option to withdraw the funds or renew the deposit for another term.

Once you have made the deposit, accessing the funds before the agreed-upon term ends may not be convenient. This method of banking allows you to determine in advance the exact interest you will earn, irrespective of market fluctuations. Term deposits work much like savings accounts or investments, but with a few key differences.īy opening a term deposit, you can securely deposit a sum of money in a bank and earn a predictable amount of interest over a set period, known as the term or maturity.

Zions bank term deposit rates