Raising a family is exciting, but it can also make a huge difference to your lifestyle and finances. Keep in mind that saving on your own is hardly enough. Now that you must think about saving for your family, it can be more challenging.
All of this may sound knotty, yet just think about how your money can help you while saving, and it will be all worth it. Just look for options on how your hard-earned money can grow. One of them is saving your money by term or time deposit.
Term or Time Deposit is an interest-bearing bank account that has a pre-set date of maturity. The money must remain in the account for the fixed term to earn the stated interest rate. In general, it pays a slightly higher rate of interest than a regular savings account. The longer the time of maturity, the higher the interest payment will be.
And if you’re considering applying for one, here are some of the reasons why a time deposit might be the best savings strategy for you.
Time deposits guarantee that your money will earn interest at a fixed interest rate regularly. It's a good option for a cautious saver, as you're unlikely to lose money.
Once you put money into a time deposit, you don't have to do anything until it expires.
One of the best things about time deposits is that they are completely free unless you withdraw your money earlier than the agreed maturity date.
The fixed interest rate on a time deposit means that the savings will continue to earn the same amount of interest, even if the market interest rate suddenly drops.
It can help curb bad spending habits, as the money is subject to early withdrawal penalties once it is saved into a time deposit.
If you want to invest with a low level of risk, you may consider opening a time deposit account. You may opt to review the features, fees, and how much you may earn and start with a modest amount for a better investment.
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