Daily Deposits
Daily deposits, also known as regular savings accounts, are designed for individuals who want to save money regularly over a longer period of time. With daily deposits, you can deposit a fixed amount of money into your account on a daily basis. These deposits are usually made from your checking account, and the frequency can be adjusted based on your preferences. One of the main advantages of daily deposits is flexibility. You can choose the amount you want to deposit each day, allowing you to save according to your financial capabilities. Another advantage is accessibility. You can access your funds at any time, which makes daily deposits a suitable option if you anticipate needing to withdraw money occasionally. However, the interest rates offered for daily deposits are generally lower compared to other savings options. Additionally, the interest calculation for daily deposits is usually done on a daily, monthly, or quarterly basis, which means you may not earn as much interest as you would with a fixed-term deposit.
Fixed-term Deposits
Fixed-term deposits, also known as time deposits or certificates of deposit (CDs), are a type of savings account where you deposit a specific amount of money for a fixed period of time, typically ranging from a few months to several years. During this period, you cannot withdraw the funds without incurring penalties, which makes fixed-term deposits less flexible compared to daily deposits. One of the main advantages of fixed-term deposits is the higher interest rates offered. Because you commit to keeping your money in the account for a specific period, banks are able to offer better interest rates. The interest calculation for fixed-term deposits is usually done on a monthly or yearly basis, allowing your money to grow at a faster rate compared to daily deposits. However, the downside is that you cannot access your funds until the fixed term ends, so you need to be certain that you won't need the money during that time. Fixed-term deposits are a suitable option for individuals who have a specific savings goal in mind and do not need immediate access to their funds. If you have a lump sum of money that you want to grow at a higher interest rate, a fixed-term deposit could be a good choice.