Time deposits

If you deposit a certain amount of money in a time deposit account, the bank will, upon expiry of the maturity period, repay you the money you have deposited, plus the interest accrued. The date when the bank will repay the money and interest will be specified in the deposit account agreement. Hence, it is very important for you to read that agreement over as carefully as you can. When selecting a time deposit product, you should take into account the rate of interest offered, as well as the maturity period during which your funds will be blocked. If you withdraw your funds from a time deposit account before the maturity date, the bank may decide to pay no interest or to impose a fine or other sanctions. The procedure to be followed by the bank in such a case will be laid down in the deposit account agreement so you should pay close attention to the relevant part of that agreement.

Keeping funds in a time deposit account is a suitable form of saving if you know for sure that you will not need the funds deposited for a certain time. The rule is that the longer the time period during which your funds will be blocked, the higher interest will be paid on these funds.