Määräaikaistalletuksen

Määräaikaistalletus, often translated as fixed-term deposit or term deposit, is a type of savings account where funds are deposited for a predetermined period. This period, known as the term, can range from a few months to several years. In return for committing their funds for a fixed duration, depositors typically receive a higher interest rate compared to a regular savings account with no withdrawal restrictions.

The interest rate for a määräaikaistalletus is usually fixed for the entire term, providing predictability for the depositor. However, withdrawing funds before the maturity date often incurs penalties, which can include forfeiture of earned interest or a portion of the principal. This feature makes it suitable for individuals who do not anticipate needing immediate access to their savings and are looking for a secure way to grow their money.

Määräaikaistalletukset are offered by banks and other financial institutions. They are generally considered a low-risk investment, especially when offered by reputable institutions that are covered by deposit insurance schemes. The principal amount and accrued interest are typically guaranteed up to a certain limit. Upon maturity, the depositor can choose to withdraw the funds, renew the deposit for another term, or sometimes even convert it to a different financial product. The specific terms and conditions, including interest rates and penalty clauses, vary between financial institutions.