Is a Fixed Term Deposit a good way to secure my wealth?

Nomo Bank

30 Mar 2022

Keeping your wealth secure is an important challenge. Whether you’re saving up for a new home, embarking on a fresh business venture, or building wealth for your family’s future, you want to feel confident that your money is in a safe place.

There are many factors that can affect the value of your wealth, including inflation, market volatility and fluctuating currency valuation. Global events often have a serious impact on these factors, meaning that maintaining the value of your wealth can often be a stressful experience!

It’s impossible to predict the future, but you can protect your wealth so that your money remains secure during any unexpected future turbulence that’s beyond your control.

What is a Fixed Term Deposit?

A Fixed Term Deposit (FTD) is a type of savings account which allows you to save for a set period of time and receive profit at the end of the term. As the customer, you are able to choose the duration of the deposit. In general, the longer you hold your money in the FTD, the better the profit rate.

The account provider will tell you the expected profit rate before the start of the term, and your money is accessible at the end of the chosen term.

Read more about Fixed Term Deposits here.

Is my money secure in a Fixed Term Deposit?

A Fixed Term Deposit is a very safe way to grow your wealth over a set period of time.

Holding your money in a Fixed Term Deposit account is a low-risk way to give you a safe return on your investment, because the expected profit rate is communicated to you at the beginning of the term.

Your profit rate won’t be affected by stock market fluctuations, giving you a steady, low-risk return on investment.

One thing to note is that if the value of the currency you hold your FTD in fluctuates, so will the value of your investment. It can therefore be helpful to look at the stability of the currency you want to hold in your Fixed Term Deposit account.

How can I open a Fixed Term Deposit?

Nomo offers Fixed Term Deposits in both GBP and USD, and you can choose the length of the term depending on how long you would like to save for, letting you grow your wealth with UK-based, low-risk offshore investments.

There’s no additional cost to open a Fixed Term Deposit with Nomo and there are no limits on the number of accounts that you can hold at one time. The minimum deposit is 5,000 GBP or 10,000 USD.

If you open an FTD account with Nomo with over 25,000 GBP or 30,000 USD, you will get improved rates and will be able to grow your wealth faster.

Once you’ve set one up, Fixed Term Deposits are low maintenance, because after you’ve opened an account and deposited your money, there’s not much else you can do until the term is up and you collect your earnings!

To get started, head to the Wealth section of the Nomo app and select Open a Fixed Term Deposit.

If you haven’t yet opened a Nomo account, download the Nomo app and apply now to start saving in GBP or USD.