Surely you have heard that if you have some money, the most advisable thing is to place it as soon as possible in the financial system, so not only will it be safer, but it can also grow.
1. With savings accounts you can withdraw money whenever you want
When depositing your money, you can use it at the time you want – although it is advisable to leave it in the bank and not spend it; On the other hand, when you open a LDW, you sign a commitment that establishes a certain period of time and you will not be able to withdraw your money until it is fulfilled.
Savings accounts pay you interest, but Term Deposits have higher rates. This happens because the restriction of not moving money allows entities to make movements with it and generate profits. Within savings accounts you can also find higher rates than others, so you should always compare the alternatives.
In savings accounts, you can deposit money when you want. If you win a bonus or receive some extra money, you can deposit it in your savings account whenever you want, but in the case of the LDW a contract is signed with the amount deposited and you cannot modify it until compliance with it. Some financial institutions have the Sum and Grow mode, which allow you to increase your Term Deposit, so you can make inquiries if that is what you want.
Payment of interest in the LDW can be in two ways
If you open a LDW, you can choose to have your interests paid to your account once the deadline has elapsed or, on the other hand, request that they be deposited monthly in another account. This is usually done by those who deposit very high amounts and use the monthly interest as a pension.
In both cases it is ideal to be clear that each entity pays different rates, for example, the cash and financial institutions usually offer higher interests than banks.