A term deposit allows you to grow your existing savings by locking them away for a set period of time and at a set interest rate. Your term can be anything from 1 month to 5 years, however, it’s worth keeping in mind that you are unable to make additional deposits after the initial grace period ends. You’ll also earn a lower rate if you need to access your money before the end of your term. In contrast, a savings account allows you to make unlimited deposits and withdrawals. However, the interest rate is typically lower. Savings accounts can be helpful if you’re just starting out and want to deposit money on a regular basis while a term deposit is useful for earning interest on top of savings you already have.