By comparison, a savings account allows you to withdraw money at any time. This is usually a loss of interest rather than any fee taken from your term deposit investment. If you need to access your money, a penalty will be applied. Withdrawals: Term deposits are, as their name states, fixed for a ‘term’.Savings accounts, in most cases, offer lower interest rates than term deposits because you can access your money at any time. A savings account offers a floating interest rate, meaning it can change at any time. Interest rates will usually be higher the longer the term is, as banks pay more for the certainty of re-lending your money for longer. Interest rates: A term deposit offers a fixed interest rate for the life of your investment.There are two key differences, with term deposits and savings accounts offering unique advantages.
