A fixed term investment is a type of investment where your money is locked away for a certain amount of time at a fixed interest rate. Some examples of fixed term investments include:
- Term deposits
- Cash management trust accounts
- They are a fixed term investment where your money is locked away for an agreed amount of time. In this period your money accrues interest at the agreed interest rate.
- Depending on how much money you have and your goals, there are two types of term deposits available to choose from:
- Short-term deposits ??? Available if you want to invest your money for short periods of time, usually between one month to one year in length
- Long-term deposits ??? These are usually from one year up to approximately seven years.
- Compared to other types of investments such shares, term deposits are considered a lower-risk and secure form of investment.