libya 115 Posted August 25, 2008 Share Posted August 25, 2008 If one opens a fixed term deposit, say 3 Months at 2.375% what happens at the end of the three months? Does the account revert back to basic rate of 0.75%? If, towards the end of the 3 months; you revisit the bank and ask for another 3 month term, what if the rates have changed? Is the interest compounded from the first 3 months? Explanations welcome. I did try asking in the bank but we could not make ourselves understood. Link to comment Share on other sites More sharing options...
sweetchariot Posted August 25, 2008 Share Posted August 25, 2008 You will no doubt find that the %age you quoted is an annualised rate, don't expect that return for 3 months. Also they have probably compounded it, but will pay you simple interest. You should have a form (which is generally translated) with a tick box to either roll it over at the prevailing rate, or deposit back to your savings a/c. Link to comment Share on other sites More sharing options...
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