How do you choose the right fixed deposit for you?
A fixed deposit (or FD) is a type of bank account where you save money with a bank for a set period of time (a ‘term’) such as 3, 6, 12 or even 60 months. In return, the bank pays you a fixed rate of return at the end of that term (when it ‘matures’). If you’d like to learn more about whether you should save in fixed deposits, click here. If not, read on to learn how to choose the right FD for you.
Deep, deep dive
- Before you invest, check that your FD is insured by PIDM
- Check terms and conditions before agreeing to promotional rates
- Split your FD savings into a few smaller accounts
- Make sure you know the penalty of withdrawing funds before the end of the term (prematurely)
- Understand requirements to partially withdraw funds from your FD