5 Benefits of Opening a Term Deposit Savings Account in the UK

5 Benefits of Opening a Term Deposit Savings Account in the UK


If you are in the UK and want to earn guaranteed risk-free returns on your idle funds, a term deposit account can be a great option. Check out this post to know 5 of the biggest benefits of term deposit accounts.

As one of the biggest economies in the world, the UK has a number of highly rewarding investment options. But the returns from most of these rewarding investment options are market-linked. This means that the returns are not fixed and might also result in capital losses. A large number of investors, especially NRIs in the UK, are not comfortable with this high level of risk.

A smart option for such investors is a term deposit account where they invest a fixed amount for a fixed duration and earn guaranteed returns on the same. Here are 5 of the top benefits of such accounts-

1 Fixed Returns

Needless to say, the biggest benefit of such term deposit accounts is the security they offer. The returns are guaranteed, and you can know the exact interest you will receive on maturity at the time of opening the account.

This adds a lot of transparency to your finances and brings in complete peace of mind as the returns are in no way linked to the market conditions.

2 Flexible Investment Tenure

While the investment tenure can vary between banks, there are banks that allow you to open a term deposit account for 6 months to 5 years. You can also renew the deposit for a tenure of your choice on maturity.

For instance, if you open the term deposit account for 1 year and don’t really need the funds at the time of maturity, you can renew the account for a tenure of your choice.

3 Low Minimum Deposit Amount

Some Indian banks in the UK accept GBP as well as USD deposits in their term deposit account. The minimum deposit amount can vary between banks. Some of the Indian banks in the UK have low deposit requirements such as GBP 1,000 or USD 1,000.

Even if you have recently moved to the UK, the low deposit amount will ensure that you are able to open a term deposit account even with small savings.

4 Account Eligibility Requirements

Even the eligibility requirements for opening a term deposit account are minimum. With most banks, you are only required to be above the age of 18 years to open a term deposit account. You will also be required to submit your ID and address proof for opening the account.

As compared to most other types of investment options in the UK, the eligibility requirements of term deposit account are one of the least complicated.

5 Premature Withdrawal Facility for Emergencies

While it is recommended that you should remain invested in term deposit savings account throughout the selected tenure, it does come with a premature withdrawal facility. While this will result in a loss of interest income, it is still a valuable benefit to have.

This ensures that you can rely on your term deposit account in case of a financial emergency.

Opening a Term Deposit Account

As you can see, term deposit account is one of the most advantageous investment options in the UK for people looking for risk-free fixed returns. Look for a reputed Indian bank in the UK to open your term deposit account and start experiencing these great benefits.


Leave a Reply

Your email address will not be published. Required fields are marked *