EyeOnHow it works
A fixed-term deposit normally trades access for stated interest terms. The term could be months or years; some products do not allow early withdrawal at all, while others charge a penalty. A fixed term does not automatically mean a fixed rate: check the actual contract. At maturity the balance may move to another account or renew automatically unless instructions arrive in time.
What if you have bad credit?
Deposit eligibility is different from borrowing eligibility, so poor credit is not necessarily a barrier. Minimum deposits, identity checks and residency conditions still apply. An account marketed as a deposit should be distinguished from a bond, investment or structured product, which may have different risks and protections.
What to look for before applying
- Whether early withdrawal is allowed and its cost
- Interest payment dates and whether interest compounds
- Maturity instructions and automatic renewal deadlines
- Legal provider, minimum deposit and protection scheme
A simple example
At a simple fixed rate of 4%, 2,000 held for a year produces 80 gross interest. If early withdrawal carries a penalty equal to several months of interest, the realised gain can be smaller. Actual calculations depend on the contract.
Examples use made-up figures to explain the feature. They are not offers, quotes or personalised advice.
Who holds the money, and what protects it?
Check the legal institution holding your money, not just the app or brand name. A qualifying deposit at a covered bank or credit union may have deposit protection, subject to the scheme’s limits, eligibility and aggregation rules. Different brands can share one banking licence. E-money safeguarding and a bank-deposit guarantee are not the same thing.
No protection amount applies everywhere. Check your local scheme, whether this account and currency qualify, how balances with the same institution are combined and whether joint or business ownership changes the calculation. Protection against an institution failing is also different from rights concerning scams or unauthorised payments.
How the rules vary by country
CDs are a familiar US term; fixed deposits and term deposits are used elsewhere. Not every product with a fixed term is insured cash. Check local deposit classifications and taxation.
Official reading and local context
These sources describe particular countries, not worldwide rights. Page reviewed 17 October 2026; account terms and regulations can change.