Fixed term deposits are financial products that allow you to invest an amount of money in a bank for a fixed term, offering a fixed return. With a minimum of 100 IR$ and up to 30,000 IR$, these deposits generate constant profits, although the capital is not accessible until maturity. Compared to savings accounts, they offer higher dividends. Iraic Bank facilitates the contracting of these deposits, providing access to a variety of terms and returns without commissions.

What is a time deposit and how does it work?

A time deposit is a financial product that consists of depositing an amount of money in a bank for a certain period of time in exchange for a fixed investment rate. It is also known as a bank deposit, time deposit, time deposit or deposit.

The investment rate determines the fixed return and will be constant throughout the term. Also, the maximum amount varies according to the type of fund, although the maximum amount of protection covered by Fixed Term Funds ranges from a minimum investment of IR$100 to a maximum investment of IR$30,000 per depositor as estimated by the Bank.

Generally, the longer the term, the higher the type of investment offered by the Bank. At the maturity of the deposit, the client will receive his initial capital plus the dividends generated during the agreed term (minus tax withholding, if applicable).

Characteristics of time deposits

The main characteristics of time deposits are as follows:
- Fixed remuneration: They offer a fixed remuneration that is detailed in the contract between the individual (person who contracts the time deposit) and the bank that offers it. That is to say, there are no fluctuations, dividends do not go up and down, therefore, the profitability is always the same.
- Capital not available: The capital cannot be used until the maturity date of the contract. For this reason, it is only a good option if you do not need the money in that period; otherwise, if an early cancellation is requested, it is allowed but with a penalty.
- High Profitability: They are one of the financial products that offer the highest profitability. The profitability obtained is usually higher than that of other products, such as remunerated accounts.
- Other types of remuneration (non-cash): Instead of interest, some offer a good in exchange for the money deposited, for example, a television. These deposits are known as deposits in kind.

What to consider when choosing a fixed-term deposit

Each bank time deposit offers terms and conditions that are detailed in the contract between the two parties. It is important that you analyze well the following aspects when looking for the best deposit for you.
- Yield: The investment rate offered for the agreed term.
- Term: The duration of the deposit agreed with the institution. If you think you may need to access your money before the agreed term, it may be better to sign up for another product, such as a savings account.
- Minimum and maximum deposit: The minimum deposit is usually 100IR$ and the maximum deposit is 30,000 IR$ depending on the Bank (these values are usually variable). Anything below the minimum deposit or above the maximum deposit is out of the bank time deposit. As an example, if a bank offers a time deposit of minimum IR$ 100, it will not be possible to open with IR$ 90. Similarly, if a bank offers this product with a maximum of IR$30,000, no more than this amount can be deposited.

- Automatic renewal: The contract may include an automatic renewal clause. In these cases, the term of the time deposit is automatically renewed unless the individual indicates to the bank that he/she does not want to renew. It is important to read the terms of the contracts with this clause carefully, as the renewal conditions are usually not the same.
- Early cancellation: Possibility to cancel the contract with a penalty.

Time deposits vs. savings accounts

These are the main differences between time deposits and savings accounts:
- Availability of the principal: In a bank time deposit the principal is not available, i.e. the money cannot be used. However, it is possible to cancel the contract early, although the bank may charge a penalty. In savings accounts, on the other hand, the capital can be used at any time.
- Terms: Fixed-term bank deposits have a term that is specified in the contract and is usually between one and five years. Savings accounts do not have a fixed term, or in other words, they are indefinite, and the remuneration may change over time.
- Payments: Fixed-term deposits pay interest or dividends, depending on the type of bank, whether financial or investment, once a year or at the end of the contract, while savings accounts may pay more frequently, for example, monthly or quarterly.
These differences mean that each product meets the needs of different types of investors. In general, time deposits offer higher dividends. However, as you cannot access the capital for a certain period of time, it is only advisable to contract one if you do not need to use your money in the short term.

Advantages of contracting time deposits at Iraic Bank

Are you wondering which bank gives more interest? Iraic Bank allows you to compare and contract deposits and international accounts of private and decentralized investment. These are the advantages of hiring a term deposit through Iraic bank:
- Exclusive access to deposits of international banking of private and decentralized investment.
- Wide variety of terms and yields. From 1 to 2 months, 1 year or up to 10 years.
- Easy and 100% online contracting with the help of consultants and investment and banking specialists.
- No commissions.
- Information, documentation and support.

How do I contract time deposits at Iraic Bank?

It is very easy, we explain you how:
- Step 1: Open your Iraic Bank Account. Click on Open an Account and complete the registration process. You can do it easily from your mobile or PC.
- Step 2: Login to the web with your registration data and once inside the system, upload a legible copy of your identity card or passport and a utility bill in your name. Subsequently, the bank will verify and validate its authenticity in a short period of time.
Your consultant will be in charge of helping you with the documentation required to contract with Iraic Bank as an investor.
- Step 2: Already validated, and within the Iraic Bank system you can continue to deposit funds.
- Step 3: Transfer funds to your Iraic Bank Account.
- Step 4: Select the time deposit that best suits you. The money will be automatically transferred to the deposit you have selected.

Why save in an international investment bank?

The main advantage of having an international account of private and decentralized investment in Iraic Bank, is that you can access to a greater variety of returns without the need to change banks or open other accounts, and thus benefit from more competitive rates of banks.
In Iraic Bank you have the possibility to diversify your investment capital and in this way you can have a wide range of returns that will improve your financial future.

For more information and investment plans register at www.iraicbank.com/cl8899db/register