A fixed term deposit is a deposit account where money is locked away for an agreed period at a fixed interest rate, with the funds generally inaccessible until the term ends and often a penalty for early withdrawal.
General information, not financial, legal, or tax advice. Verify current terms and eligibility with the provider before applying.
How a fixed term deposit works
With a fixed term deposit, a business places a sum of money with a provider for an agreed length of time, often ranging from a few months to several years. In return the provider pays a fixed interest rate set at the start, so the return is known in advance and does not move with the market during the term. The money is generally locked for the full period. At the end of the term, known as maturity, the deposit and the interest are returned, or the provider may offer to renew the deposit for a further term. Rates, minimum deposits, and available terms vary by provider and change over time, so figures should be checked as of 11 January 2026.
Fixed term deposit and notice account
Both reward a business for leaving money in place, but access works differently. A fixed term deposit locks the money until a set maturity date. A notice account instead lets the business withdraw after giving a set notice period, such as 30 or 95 days, without a fixed end date. A fixed term deposit usually offers a known rate for the whole term, while a notice account rate can change. The choice depends on whether the business needs a fixed return or more flexible access.
Interest and early withdrawal
Interest on a fixed term deposit may be paid at maturity or at intervals during the term, and providers often quote an annual equivalent rate to help compare products. Because the money is committed, withdrawing before maturity is often not allowed or carries a penalty, such as a loss of interest. A business considering a fixed term deposit may want to confirm the early access rules and how interest is paid, since these vary by provider.
Frequently asked questions
What is a fixed term deposit?
Can you withdraw from a fixed term deposit early?
How is interest paid on a fixed term deposit?
How is a fixed term deposit different from a notice account?
Definitions, fees, features, and eligibility change and vary by region. This page was last reviewed on 11 January 2026. Confirm current terms with the provider before applying.