Comparing Term Deposits for Investment Options by Mozo Term Deposits

As you might have guessed, a term deposit is a deposit held with a bank for a fixed term. They are an increasingly common method of saving money by investing it at a low risk for a certain period of time.
In the present day, with people who have made probably more rewarding investments only to see a bad outcome, it is becoming a very common approach to stow away cash where it cannot be touched for a period. If you have a lump sum and want to invest it, you could put it into a hedge fund and witness as the roller coaster takes the worth of your money up and down at the according to the markets, often keeping you on your toes. A much simpler and safer that guarantees profits is to put it in a term deposit account.

When stock and real estate markets are healthy, many people rightly would rather invest their money into something more dynamic, as opposed to a term desposit. However, it is clear to anyone who has an eye on today's unstable economies that a term deposit is a very logical investment right now. By putting your money out of commission for a period of time, you are admittedly hurting your immediate bottom line. However, the fact that you have put it away for that period of time, without any demand attached to its return, qualifies you for a guaranteed profit - often a higher earning than a basic savings account.

Choosing between a savings account and a term deposit is a simply a question of: do you most favour flexibility, or do you feel it is better to wait for an attractive return? This will depend itself on a simple question: are you able to put this money out of sight and out of mind for a while? If the answer is "yes" then you are the likely candidate for a term deposit. If you compare term deposits to savings accounts then you will notice that the profit is your reward for sitting tight and trusting that your investment was the most suitable choice.

Conversely, if having fluid assets is a necessity, it does not help you to have amounts tied up in term deposits. You can technically withdraw some money from a term deposit before term's expiry period, but you will negate at least a percentage of the interest earned, and in some cases, some of the money you actually put away. Term deposits are not ideal for the kind of saver who is likely to get nervous with their money being out of commission for a spell. But, if you were likely to need the money back in five months, or a year's time, it would be a good idea to put it in a term deposit, and enjoy the extra money that your patience has earned you.

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