5 min read
2026-02-28
The nominal rate doesn't account for compounding frequency. A deposit at 11% with monthly compounding is more profitable than one at 11.5% with end-of-term payout.
Deposit insurance guarantees returns up to a certain amount per bank (e.g., $250,000 FDIC in the US). If your sum exceeds the limit, spread it across multiple banks.
Some banks forfeit all interest on early termination. Choose deposits with partial interest preservation.
Deposits that allow additional contributions let you grow the sum, though they may have a slightly lower rate.
Deposit rates follow the key rate. When rate cuts are expected, lock in a high rate for a longer term.
Compare options with the Deposit Calculator.
See also: Budget Planner, Inflation Calculator