Term Account – Shedding Light on Its Different Vital Aspects
The term account or term deposit account is a kind of savings account that is likely to be a more long-term choice compared to that of a standard bank account. It is a safe financial investment that generates a return determined at the time of signing the contract. The time period of these accounts can vary from several months to years.
The fundamental principle of a term deposit account is putting your cash into a bank account for a limited period of time. When this period comes to an end, you get all your money back in addition to interest on that sum. These interests may deviate according to the duration of your investment and the rate as decided at the start. From one bank to some other, the interest rates may differ; therefore, it is advisable to compare quite a few deposit accounts offered by multiple banks so as to choose the most beneficial one. The lower limit for deposits is not the same all over, but they usually set out from 1000 euros to 100,000 euros or even more.
You can deposit money into your term account(French: compte à terme) only once at the commencement of the agreement, so you get rid of any monthly or annually payment as associated with other types of investments. Some of the common deposit terms possible include 1 month, 3 months, 6 months, 1 year, and 2 years. The least duration is normally one month and the highest duration can surpass 2 years in several banks.
This form of investment is advocated when you would not like to put your capital at risk. In fact, the conditions of contractual agreement are clearly specified in the subscription term of your account, so you know from the beginning that you will receive your principal as well as interest amount at the maturity date of your term account. Such an account is also remarkable when you are aware that you won’t feel the need of your cash for a particular period. You can subsequently put this amount into a deposit account, acknowledging it is available for you to utilize at due date.
When you open a term account, the rate of return that you determine with your bank is the annual rate of interest. Hence if you go for several months of deposit only, then you will need to calculate in order to find out the exact interest amount you will obtain. The rate of interest is generally fixed or progressive. In many cases, experts suggest to open an account for durations below one year since if you freeze your funds for duration too lengthy, you may miss out on greater investment possibilities.
Compte Terme - About Author:
Compte Terme recommends the opening of a term account (French: compte à terme) that is widely recognized as a profitable and safe investment option. Take a look at his website to acquire precious information on this type of long-term account. Don't wait to put your money into it. Register today! http://www.xn--compteterme-d7a.com/
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