You can place money for a certain or unlimited period.
Deposits with a limited term are called fixed-term. In such programs, money is placed for several months or years, and if you withdraw it early, you can lose the accrued interest. This option is suitable for those depositors who do not plan to use the invested funds for the entire term of the agreement.
Deposits with an unlimited term are investments on demand. The difference with fixed-term deposits is that the money can be withdrawn on any day, without waiting for the end of the contract, but qatar mobile database the interest rates may be lower.
The difference with deposits is that you won't be able to use the money freely. Usually the bank limits the possibilities for depositing and withdrawing funds. The conditions for making expenditure transactions are known in advance and are spelled out in the agreement.
For example, you opened a term deposit for 1 year without the possibility of withdrawal, but decided to withdraw the money in 2 months. You will be able to withdraw only the amount you deposited, but you will not receive the accrued interest.
If you value the ability to deposit and withdraw funds during the term of the agreement, then a replenishable deposit with partial withdrawal will do. If you are ready to "freeze" the invested amount for the entire term, then programs with a higher rate, but with a ban on making expenditure transactions, will do.
Interest payment procedure
Interest can be paid monthly, quarterly, annually or at any other frequency. There are also programs with a one-time accrual of interest at the end of the contract.
There are two types of deposits:
with capitalization of interest,
without capitalization.
When capitalized, interest is paid into the deposit account and added to the amount already stored there. Accordingly, at the next payment, interest is accrued on the entire current balance.
Deposits without capitalization are distinguished by the fact that interest is transferred to a third-party bank account specified by the client. This method allows you to use interest income immediately after accrual.