Term deposits

These are non-tradable fixed or floating income investments usually with maturities ranging anywhere from a month to five years or even more. When a term deposit is created, the lender (investor) understands that the money can only be withdrawn after the term has ended. If the investor wishes to withdraw the money at an earlier date, they may be charged a fee for obtaining the funds prior to maturity. ‘Breaking’ the TD is often at the borrowers discretion and for the most of largest ADIs a 31 days notification period is required. Investors should read the terms and conditions of a term deposit investment thoroughly before investing their funds.