Updated regularly based on local banks
If you’re looking for a safe place to store your money while earning a little interest, two common options are savings accounts and fixed-term deposits (also known as time deposits or CDs). Both are low-risk ways to grow your money—but they work in different ways.
In this guide, we’ll explain what each one is, how they compare, and when to choose one over the other. We’ll also show you what to look for when comparing offers from different banks, so you can make the best decision for your financial goals.
What Is a Savings Account?
A savings account is a basic bank account where you can keep your money and earn interest. It’s flexible—you can deposit or withdraw money at any time, usually without fees or penalties.
Main Features:
- Earns interest, usually at a modest rate
- Easy access to your money
- Can be linked to your checking account
- Often has no minimum term
Pros:
- Great for short-term goals or emergency funds
- Money is always available
- Some accounts offer automatic transfers or round-up savings tools
Cons:
- Interest rates are usually low
- Rates may change over time
- May include monthly limits on withdrawals (depending on the bank)
Example:
You have $2,000 in a savings account earning 1.5% annual interest. After one year, you earn about $30 in interest—without locking your money away.
What Is a Fixed-Term Deposit?
A fixed-term deposit (or time deposit) is a product where you agree to keep your money in the bank for a set period (for example, 6 or 12 months) in exchange for a higher interest rate. You cannot access the money during that time without paying a penalty.
Main Features:
- Higher interest rates than regular savings accounts
- Locked for a fixed term (e.g., 3, 6, 12, or 24 months)
- Usually cannot add more money after deposit
- Withdrawal before the term ends may result in a fee or lost interest
Pros:
- Better interest rates for longer terms
- Fixed return—you know exactly how much you’ll earn
- Encourages disciplined saving
Cons:
- No access to money during the term
- Not flexible—hard to change once it starts
- Penalties for early withdrawal
Example:
You invest $5,000 in a 12-month fixed-term deposit at 4% interest. After one year, you earn $200 in interest—as long as you don’t withdraw early.
Key Differences at a Glance
| Feature | Savings Account | Fixed-Term Deposit |
|---|---|---|
| Access to funds | Anytime | Locked for a set period |
| Interest rate | Usually lower | Usually higher |
| Flexibility | High | Low |
| Minimum balance | Low to none | Often higher |
| Ideal for | Emergency fund, daily saving | Medium to long-term saving |
Which One Should You Choose?
The best option depends on your goals and situation.
Choose a savings account if:
- You want quick access to your money
- You’re building an emergency fund
- You’re just starting to save
- You may need the money within a few months
Choose a fixed-term deposit if:
- You don’t need the money for a while
- You want a guaranteed return
- You’re saving for a specific date (like a trip or a large purchase)
- You want to avoid the temptation to spend it
Many people use both—a savings account for flexibility and a fixed-term deposit for higher returns.
How to Compare Offers From Local Banks
Interest rates and conditions vary between banks and countries, so it’s a good idea to compare:
- Interest rate (APY): The annual return, including compounding
- Term length: How long your money is locked (for deposits)
- Minimum balance: How much money is required to open the account
- Fees: Any maintenance or withdrawal fees
- Conditions: Can you add funds? Can you withdraw early?
We recommend checking your local banks regularly for updates. Some banks offer special promotions for new customers or higher rates for online accounts.
Tip: Bookmark our savings comparison page—we update it monthly with the best offers from local banks.
👉 [Compare local savings and deposit rates here] (Insert link)
Safety and Risk
Both savings accounts and fixed-term deposits are generally safe. In most countries, your money is protected by government insurance (such as FDIC in the U.S. or similar systems elsewhere) up to a certain amount.
These products are ideal if you want low risk and steady growth, especially compared to investing in stocks or cryptocurrencies.
Final Thoughts
Saving money is a smart habit—and choosing the right place to keep it can make a big difference over time. If you need flexibility, a savings account is a great choice. If you can lock your money away for a few months or more, a fixed-term deposit can help you earn more with little effort.
Think about your goals, compare offers, and make your savings work for you.