Term deposits

Term deposits are financial instruments. These are cash deposits remunerated at fixed maturity date and rate, determined in advance.

1. Characteristics:

  • Yield: payment of interests;
  • Duration: short-term (up to 4 years), medium-term (4-8 years) or long-term (more than 8 years);
  • Interests: interests depend on the terms and conditions of the deposit; e.g. fixed interest for the entire duration or variable interest often linked to financial market rates (e.g. LIBOR or EURIBOR).

2. Advantages:

Depending on market conditions, these products may provide a higher return than other fixed-income products.

3. Risks:

These products are mainly subject to the risks of inflation, exchange and interest rate and of insolvency of the counterparty, as described in Financial instruments Basic risks.

Term deposits


Some possible deposits proposed by banks online:

Minimum Opening Deposit

● Time Deposit (Non-Retirement) Account
7–31 Days Maturity Term $ 2,500
32 Days–60 Months Maturity Term $ 350
● Retirement Time Deposit Account
Fixed Rate IRA Time Deposit – (90 days–60 months) $ 350
Retirement Income IRA Time Deposit (12 Month) – (Owner must be 59½ or older) $ 25,000
18-Month Variable Rate IRA Time Deposit $ 500
Bonus Rate Rollover IRA Time Deposit $ 25,000

Time Deposit Account (including Fixed Rate IRA Time Deposit) – After the Time Deposit account is opened, you may not make additional deposits into the account until after the maturity date, and only during the grace period.

Variable Rate Retirement Time Deposit Account – After a Retirement Income IRA Time Deposit (12-Month) or 18-Month Variable Rate IRA Time Deposit account is established, you may continue to make additional deposits. Each additional electronic deposit must be at least $10. Each additional non-electronic deposit must be at least $25.

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Bonus Rate Rollover IRA Time Deposit – The Bonus Rate Rollover IRA Time Deposit is a Fixed Rate IRA Time Deposit account with a term of 36 to 60 months, which is available for a qualifying new deposit. The term you choose determines how many months your account will initially earn interest at the “bonus” rate, which is 0.25% above the standard rate that applies for the remaining portion of the term.

● The entire amount must be a new deposit with Xxxx Bank.
● After the account is opened, you may not make additional contributions into or withdrawals from the account until the maturity date.

Term deposits

Term deposits   Term deposits

Term deposits Term deposits Term deposits Term deposits Term deposits

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