Deposit glossary
The terms you will meet when comparing deposit and savings rates, in plain words.
- Fixed deposit / time deposit / term deposit / CD
- Money placed with a bank for a fixed term at a fixed rate. Called a CD in the US, a GIC in Canada, a term deposit in Australia and New Zealand, a fixed-rate bond in the UK and Festgeld in Germany.
- Board rate
- The bank's standing published rate for each term and amount. Usually lower than promotions, and often what a promotional deposit renews into.
- Promotional rate
- A time-limited rate, usually higher, often with a minimum amount, fresh-funds rule or online-only placement.
- Fresh funds
- Money that is new to the bank, moved in from another bank. Existing balances usually do not qualify for fresh-funds promotions.
- p.a. (per annum)
- The rate for a full year. A 6-month deposit at 2.00% p.a. earns about 1% over the six months.
- APY / AER / EAR
- Annual percentage yield (US), annual equivalent rate (UK) and effective annual rate: the yearly return including compounding.
- Effective rate
- For bundles where part of the money must sit in another account, the blended rate the bank publishes for the whole amount. We rank by it when the bank gives it.
- Deposit insurance
- A government scheme that repays deposits up to a limit if a bank fails, for example FDIC (US), FSCS (UK), SDIC (Singapore) or DICGC (India). Each country page names the scheme and its limit.
- Policy rate
- The central bank's main interest rate. Deposit rates tend to move with it.
- Treasury bill (T-bill)
- A short-term government security sold at auction. Not a bank deposit and not covered by deposit insurance; backed by the government.
- Tenure / term
- How long the money is locked in. Withdrawing early usually costs some or all of the interest.
- Priority / premier tier
- A bank relationship level that needs a large balance or other products. We hide these rates by default because not everyone qualifies.