If you need to access your money, a penalty will be applied. Savings accounts, in most cases, offer lower interest rates than term deposits because you can access your money at any time. A savings account offers a floating interest rate, meaning it can change at any time.
Interest rates will usually be higher the longer the term is, as banks pay more for the certainty of re-lending your money for longer.
There are two key differences, with term deposits and savings accounts offering unique advantages.
