Term Deposits

You can count on Debden Credit Union Term Deposits to earn competitive interest rates. Plus, you'll enjoy peace of mind knowing your investment is solid and secure. We'll help you select the terms that suit you best. Anywhere from one month to several years and we'll guarantee the interest rate for whatever length of term you choose.

What are term deposits?

Term Deposits are special accounts for a set amount of money (the "deposit") over a set amount of time (the "term").

A term length can be as short as 30 days and as long as five years, and anywhere in between. A term deposit of less than one-year is known as a short-term term deposit, and a term deposit of more than one year is known as a long-term term deposit.

A short-term term deposit usually pays less interest than a long-term term deposit.

Why do term deposits pay more interest than chequing or savings accounts?

The credit union uses the money its members have in term deposits as "security" for loans to other members and for its own investments. The money that the credit union earns in interest from loans and investments is used to operate the credit union and to pay back our members as interest on your term deposits.

What happens when the term ends?

You can choose what you want to do with both the original term deposit amount and the interest you've earned when the term deposit term ends. Options include:

  • Transferring the original amount and the interest earned together into your savings or chequing account;
  • Transferring just the interest earned into your savings and chequing account and leaving the original term amount into a term deposit of the same or different length;
  • Transferring the original amount and the interest earned together into another term deposit of a different length or type;
  • Rollover the original amount and the interest earned together into a same length term.

Types of term deposits

What is the difference between redeemable and non-redeemable term deposits?

A redeemable term deposit can be "cashed in" at any time during its term (subject to restrictions on early redemption)

A non-redeemable term deposit cannot be "cashed in" during its term.

Should I have a short-term or a long-term term deposit?

The decision to have a short-term or long-term deposit can depend on whether you think you will need the funds for something else - a major purchase or different type of investment, for example - sooner or later, and whether you think interest rates will rise and fall.

Tip! A short-term term deposit means you can access your money quickly but it usually pays less interest than a long-term term deposit.

Can I have more than one type of term deposit, or term deposits of different kinds?

Absolutely! In fact, a good savings or investment plan includes different types of terms deposits for different amounts for different term lengths. Term deposits can be used as part of a very sophisticated savings or investment strategy.