One of the surest products in finance, Fixed Deposits offer guaranteed rates. Competitive interest rates make these accounts quite attractive.
Non-Redeemable Term Deposit:
This option offers the best interest rates and will become accessible at the agreed maturity date. At that time, you may then renew the account, withdraw and use your money, or transfer funds to another type of account.
Cashable Fixed Deposit:
This flexible option pays a premium return that exceeds the regular savings rate but still allows you to access your funds before the agreed maturity date or cash out your account (principal and interest accrued to date) at any time. Either way is without any penalty.
Laddering Your Fixed Deposits:
Initial Investment Laddering refers to staggering the maturity dates of the fixed deposits in your portfolio. This strategy ensures that a portion of your investment is accessible each year and minimises the impact of interest rate fluctuations. For instance, if interest rates drop just prior to the maturity date of one of your fixed deposits, only a portion of your fixed deposit portfolio will be affected. Laddering also maximises your returns by moving your investment toward long-term fixed deposits, which generally pay higher rates.