What is the difference between a savings account and a term deposit account?
While you can deposit your savings in both a savings account and a term deposit, there are a couple of differences between them.
Your money is easily accessible in a savings account, which you may even be able to link to your everday account. On the other hand, your money is kind of locked into a term deposit.
If you need to access the money you have in a term deposit you may be able to break your term, but this will incur some costs and fees.
The advantage of a term deposit is that you can lock in an interest rate, which may be higher than a regular savings account, and pick the amount of time you want to lock your money away for, which could be only a month or up to three years.
If you are worried about interest rates decreasing and you don't mind locking some money away you may want the security of a term deposit, but if you are after flexibility and think interest rates will keep rising a savings account may be a better fit.