Fixed savings and term savings are two types of savings accounts offered by banks and financial institutions. Fixed savings are things that keep money in an account for a certain period, usually 1 to 5 years. We cannot withdraw the money before the period ends, but we can get a higher interest rate than regular savings. Term savings is like saving money in an account for some time that we can choose, it can be several months to several years.

Fixed Savings

• Has a fixed storage period, usually between 1 to 5 years.

• It usually has a higher interest rate because it requires a long-term commitment from the customer.

• Deposited funds cannot usually be withdrawn before the end of the deposit period.

• Have a higher minimum amount to open an account.

• Usually offered by children and major financial institutions.

Term Savings

• Have a more flexible storage period, which can be several months to several years.

• Interest rates may be lower due to shorter storage periods.

• Allows withdrawal of funds before the storage period ends, but may incur fees or penalties.

• Allows withdrawal of funds before the storage period ends, but may incur fees or penalties.

• In addition to banks and major financial institutions, term deposits can also be offered by credit cooperatives and other financial institutions.

Interest is usually lower because of the shorter storage period. We can withdraw the money before the period ends, but there may be a small fee or penalty. Usually, this fixed deposit does not require a high minimum amount to open an account. So, if you want to open a fixed or term savings account, it’s a good idea to talk to your bank or financial institution to get more information.