Time deposit
定期存款
A time deposit is money placed with a bank for a fixed term, such as three months or a year, at a rate that stays the same during the term. At maturity the principal and interest go back to your account, or are placed again as you instruct. If you take the money out early, the bank may pay no interest or a lower rate, and may charge a fee.
Example
Suppose you place HK$100,000 for 3 months at 3% a year.
- Principal
- HK$100,000
- Term
- 3 months
- Rate per year
- 3%
- Interest at maturity
- HK$750 (100,000 × 3% × 3/12)
- Returned at maturity
- HK$100,750
At maturity you get HK$100,750; withdrawn early, the interest may be cut or lost, as the bank's terms say.
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This page is information, not investment, lending or tax advice.