Fixed-Term Deposits
Fixed-Term Deposits Explained: How CDs and Term Deposits Work
A fixed-term deposit trades flexibility for a guaranteed rate. Learn how CDs and term deposits work, how to pick a term length and how a deposit ladder works.
Fixed-term deposits, known as certificates of deposit (CDs) in the US and fixed-rate bonds or term deposits elsewhere, let you lock in an interest rate in exchange for leaving your money untouched for a set period.
Here you will find clear explanations of how deposit rates are set, how to choose a term length, what early withdrawal really costs, and how strategies like laddering balance return and flexibility.
A fixed-term deposit trades flexibility for a guaranteed rate. Learn how CDs and term deposits work, how to pick a term length and how a deposit ladder works.