Time deposits

A fixed-term or time deposit is a way of earning interest on savings that you do not need right away.

Basic features

A time deposit is a banking product allowing you to deposit your money with the bank for a fixed period of time, after which it is paid back with interest at the rate stated in the agreement.

Opening

Before you deposit your money, the bank should give you the information you need to compare offers and make an informed decision. This information must be provided free of charge.

Payment

The interest will be paid at the rate stated in the agreement with the bank. This is the price the bank pays you for the money you have deposited. Payment can also be in kind.

Types

There are two different types of fixed-term deposit: fixed-rate time deposits and structured deposits, which offer a return based on changes in a given benchmark.

Renewal

Time deposit agreements may include a tacit renewal or rollover option. If so, the agreement has to define the specific conditions under which the deposit will be rolled over.

Cancellation

Depending on the terms of the agreement, the customer can often cancel the deposit before it reaches maturity. The bank may also be able to cancel the deposit, if the terms and conditions allow.

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