What Is a Term Deposit?

At First Credit Union, our mission is to provide products and services that support our members in achieving their financial goals. If saving is a priority for you, we offer a range of savings accounts that can help you reach your goals. If you are after a more serious saver than you may want to consider a term deposit. But what exactly is a term deposit?   

A term deposit, often known as a fixed deposit or term investment, is like a savings account, however, you are unable to add money to the account or use the savings until the end of a term- agreed by you. In return, the financial institution pays you a predetermined interest rate on the amount you are depositing (principal amount).  To put it simply - fixed amount, fixed length of time, fixed interest rate.

In New Zealand, term deposits are a popular choice for those who want to earn a higher return on their savings. The higher interest rate can make a large difference on how your money works for you. Term deposits offer a fixed interest rate, which means that your returns are predictable, providing you with peace of mind and stability. 

The terms of a term deposit can vary. At First Credit Union, we offer flexible terms ranging from 3 months to 2 years, allowing our members to choose the duration that best suits their financial goals. Longer terms typically attract higher interest rates, while shorter terms provide more flexibility.  You are always informed of what is happening, toward the end of the term you will get a reminder from us with options for what happens next. You and can keep an eye on your term deposit and watch it grow using our Mobile App or Internet Banking.

As a member of First Credit Union, your deposits are covered by the Government Deposit Guarantee Scheme, providing you with an added layer of protection and peace of mind. When considering a term deposit, it's important to carefully assess your financial needs and objectives. With First Credit Union, you can enjoy competitive interest rates, flexible terms, and the assurance that your hard-earned money is working for you.

Ready to get started?  We encourage our members to reach out to our friendly and knowledgeable team to discuss term deposits and find the best option to meet your needs. Contact us today or find your nearest branch to get started.