Term Deposit / Fixed Deposit
An account with locked funds for a set time, widely offered in UAE.
Detailed Description
Term Deposit / Fixed Deposit
What is the main advantage of a term deposit?
The main advantage of a term deposit is the guaranteed returns due to a fixed interest rate.
How long can the maturity period for a term deposit be?
The maturity period can range from a few weeks up to 5 years, depending on the financial goals of the depositor.
What are the penalties for early withdrawal of a term deposit?
Early withdrawal may result in penalties that can reduce the interest earned or affect the principal amount.
Are term deposits considered low-risk investments?
Yes, term deposits are considered low-risk investments as the principal amount is safeguarded against market fluctuations.
Can I open a term deposit using an online platform?
Yes, many banks offer online services that allow you to open a term deposit conveniently.