A fixed term deposit is a product in which the customer delivers to The bench an amount of money over a period of time in exchange for remuneration in the form of interest on the capital borrowed.
Payment of this interest can be made at the end of the period or in installments during it.
If the client claims their money before the end of the agreed term, the bank usually considers a penalty that normally translates into a decrease in the profitability offered, so it is very important when hiring this product to take into account the possible need for liquidity of the invested capital.
In most of these products, the renewal of the tax is usually allowed for an additional period, in this case the entity must be notified a reasonable time before maturity so that days are not lost during which new interest could be generated.
How do time deposits work?