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Certificates of Deposits & Term Deposits 101

What are Certificates of Deposits “CDs” & Term Deposits “TDs”?

CDs and TDS are saving instruments that are offered by most banks, whereby you deposit a certain sum of money with the bank for a specific period and they pay you an agreed upon interest rate.

What is the difference between Certificates of Deposits “CDs” & Term Deposits “TDs”?

While CDs & TDs seem to be different instruments, they are actually the same thing. CDs typically refer to deposits with a period of greater than one year while TDS to deposits with a period of less than one year.

What are the main factors to consider when researching CDs & TDs?

There are a few factors you need to decide on before you start comparing between different CDs & TDs. Namely:

  • Currency: Both saving instruments are offered in multiple currencies (Egyptian Pounds, US Dollars, Euros, and British Pounds)
  • Interest Rate Fixed vs. Floating: You either have a fixed interest rate for the entire period, or one that changes based on the changes done by the central bank of Egypt. Fixed is a safer investment that protects against any reduction in interest rates but loses you an potential in interest rate increases.
  • Time Period: The amount you plan to invest can be between 1 month and up to 10 years.
  • Breakage Penalties: Some of the products can include breakage penalties if you decide to withdraw your funds before the agreed time period or tenor.

What do I need to apply for a Saving Deposit?

Generally, you only need two things:

  • Know Your Client “KYC” form
  • An account opening form to open your account

How do I apply for a CD or TD?

Currently you apply for a CD or TD by either calling the call center of your bank or visiting a branch, a loan officer will take you through the process. To make sure you have an efficient process make sure to visit our Save Deposits page(https://www.faydety.com/save/deposits) to make sure you are eligible and have the required documentation ready.

APPLY ONLINE: Soon Faydety will enable you to apply to save deposits from the comfort of your own home, office, or even coffee shop. If you are interested in this service, please click on this link and we’ll notify you as soon as it's available.

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