Idea
What is a Fixed Deposit?
by
iFAST Global Bank
A fixed deposit, also known as a "FD" is an agreement between a bank and a depositor to set a predetermined period and interest rate for the deposited funds, which can be withdrawn with interest upon maturity.
What are the advantages of fixed deposits?
1. High Security
Fixed deposits are a fundamental banking service and one of the most popular investment options. Their primary advantage is high security since bank deposits are inherently low-risk. Additionally, regulatory systems explicitly define deposit protection for bank customers, ensuring compensation in case of bankruptcy or closure.
For example, iFAST Global Bank is a regulated UK bank eligible for protection under the Financial Services Compensation Scheme (FSCS), providing coverage up to £85,000 per person.
2. Higher Interest Income
Another significant advantage of fixed deposits compared to current accounts is the higher interest rates. Depositors can lock funds into a bank's fixed-term account, and upon maturity, they can withdraw the principal and interest.
Fixed deposit terms typically range from 1 month to several years. As of October 9, 2023, iFAST Global Bank offers the following fixed deposit interest rates:
Currency | Fixed 1 month | Fixed 3 month | Fixed 6 month | Fixed 12 month | Fixed 24 month |
GBP | 4.30% | 4.50% | 4.80% | 5.00% | 5.10% |
USD | 3.65% | 4.00% | 4.35% | 5.00% | 5.10% |
HKD | 3.26% | 3.45% | 3.80% | 4.00% | 4.20% |
3. Low Initial Deposit
Fixed deposits usually have a relatively low minimum deposit requirement. Using iFAST Global Bank as an example, the minimum deposit for a 1-year USD fixed deposit is as low as USD 1, making it accessible even for individuals new to the workforce.
4. Simple Principles for Beginners
Compared to complex investment products like stock trading that requires constant monitoring, fixed deposits save energy. By depositing money into a fixed-term account, individuals, especially beginners, can stablely earn interest without the need for daily market tracking.
5. Cultivating Forced Saving Habits
Fixed deposits help develop forced saving habits. For many, financial management is challenging, and without proper control, spending can become excessive. Fixed deposits, by locking funds for an extended period, effectively limit withdrawal frequency and possibilities. This "locking" mechanism encourages more prudent financial management, making individuals value each income source.
How to enjoy iFAST Global Bank's services?
1. Convenient New User Registration
New users can visit the iFAST Global Bank official website (https://www.iFASTgb.com/home) and follow the prompts to apply for a bank account. The application process can be completed in as little as 5 minutes, and approval is typically within a week.
2. Numerous Benefits for Existing Users
Existing users can find our MGM invitation link in the iFAST Global Bank app, share it with friends, and enjoy special benefits when friends register.
Deposit a minimum of £500 and keep the money in the account for 3 months. You'll receive £5, and your friend will also receive £5. (Note: Specific reward criteria are subject to the details specified in iFAST Global Bank's "Terms of Use.")
Following a single application, we offer you multi-currency access to GBP, USD, EUR, HKD, SGD and CNY. All in one place, no more hassle!
Join over 780,000 people in iFAST Group who use iFAST to save, invest and send your money instantly, and it's free!
iFAST Global Bank is a member of the Financial Services Compensation Scheme (FSCS).
iFAST Global Bank is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Our Financial Services Register number is 716167. We are registered in England and Wales, our company number is 4797759.
Please note that the provided details serve as general information and should not be considered as financial advice or endorsements. We strongly advise customers to diligently carry out their own research and consider seeking expert guidance for tailored financial choices.
