There are several types of bank accounts available for individuals to use. Besides savings accounts, there are other types of accounts that allow customers to earn higher interest.
A comparison of a Call Deposit vs Time Deposit can provide you with more knowledge about which investment tool offers a better financial solution for your individual needs.
Call Deposit vs Time Deposit: what you need to know
What is a Call Deposit?
A Call Deposit is a simple investment account that provides easy access to most of your cash, while still allowing you to earn a higher return.
This facility is generally offered by financial institutions as a way of attracting more deposits. These accounts offer competitive returns. Accessing finance is simple, as you can place notice when you need to withdraw above your accessible account.
How does a Time Deposit compare?
Investing in a Time Deposit (also known as a certificate of deposit) allows you to earn much higher interest. It requires a minimum deposit and ties your money up for a set period of time.
A Time Deposit requires you to sacrifice liquidity and rates typically fluctuate in tune with the prime lending rate. A further benefit of a Time Deposit is that your investment can be denominated in different currencies. You also get access to your money on demand, giving you control of your savings. The longer the term, the better the yield on the money and you also have the opportunity to make additional deposits at any time.
Further benefits offered by a Time Deposit:
- You can earn a better return on your investment
- You can save at your own pace
- You have the flexibility to withdraw money whenever you want
- You don’t have to take risks with your money
- You can access services through a channel you choose, depending on the financial institution you choose to invest your funds in.