The fixed-term deposit is a savings account on which the funds are blocked for a certain time, or "term". This is generally a short period: a week, a month, a quarter, half a year, a year or even more.
Unlike savings books, a term account gives you a guaranteed interest rate for the entire term of the investment. The longer the term and greater the amount invested, the more attractive the interest rate shall be. The rate depends on market interest levels and so is often subject to fluctuations.
Deposits are held to maturity and there is no secondary market. In principle, the interest is paid on maturity.
Once the interest rate is set, you are assured a guaranteed return, even if market interest rates change unfavourably.
Apart from the flexibility offered in the term, you have the ability to negotiate repayment of your fixed-term deposit prior to maturity at any time. Luxembourg ING then sets the redemption price in accordance with the expenses linked to this early termination.
My Money Business
Articles that might interest you
A bank can attached more than one savings account to one current account and open more than one standing order.
An automatic savings plan (aka ASP) is a standing bank transfer order that transfers money from your current account to your savings account on a fixed date.
Studies last longer and joining the professional life is harder which lead parents and grand-parents to save for their children.
How can we help you?
Financial company You are a Luxembourg financial company (holding, SOPARFI) and wish to have good management of your accounts.
Real estate professional
You are a real estate investor, real estate developer or builder / developer operating in Luxembourg, of an intermediate size, with banking and project financing needs.
You are a public institution, a municipality or a non-profit association and you are looking for a new local banking partner.
You are a newly created innovative company, looking for investment funds, with real potential for economic growth.