With a term deposit you won’t be able to make any extra contributions beyond the initial lump sum - once you’ve set up your term deposit you won’t be able to make any further changes to it until it reaches the end of its set term. That means you’ll know from the outset exactly what the return on your money will be. However, in return you’ll get a guaranteed rate of interest. During this term you won’t have access to your money. A term deposit lets you lock away a lump sum of money for a set length of time (the ‘term’).
