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How to Put Money into Fixed-Term Deposits on Investfora
A plain guide to understanding fixed-term deposits, how to choose one, and what happens to your money while it sits and when it matures.
What is a fixed-term deposit?
A fixed-term deposit is simple: you give a bank a sum of money for a set period of time, and in return the bank agrees to pay you a fixed rate of interest. You know from the start exactly how much you will receive back and when.
The bank uses your money during that time, which is why it pays you for the use of it. The longer you agree to lock your money away, the higher the rate tends to be, because the bank has your money for longer.
On Investfora, the banks offering deposits are all authorised in Europe. This means your money is covered by that country's deposit-guarantee scheme up to one hundred thousand euros per person per bank. If the bank were to fail, that scheme would repay you.
Fixed-term deposits are one of four things you can put money into on Investfora today. The others are business lending, cryptocurrencies, and trading through a broker. Real estate is coming. Each sits in its own separate investment on your dashboard.
How deposits appear on Investfora
When you log into your Investfora account, you will see your cash balance—the euros you have transferred in but not yet invested. From that cash, you can choose to open a fixed-term deposit.
Each deposit listing tells you what you need to know. You will see the bank's name and country, the interest rate, the term length, how much has been funded so far, and how much more can be invested.
Because every investment on Investfora is held separately, each deposit you open has its own screen. If you choose to open three deposits with three different banks, you will see three separate lines on your account, each showing its own balance, interest earned to date, and maturity date.
Nothing is invested unless you instruct it. You might transfer money in, look at the deposits on offer, and decide to wait. Your cash sits in your Investfora balance earning nothing until you choose to move it into a deposit. The choice is always yours.
Choosing a deposit: what to think about
The first thing to consider is how long you can afford to leave the money untouched. If you might need it in six months, do not open a two-year deposit. Once the money goes in, it stays there until the term ends.
The second thing is the rate. Different banks offer different rates. A longer term usually means a higher rate, but not always by much. You need to decide whether waiting longer for your money is worth the extra interest to you.
The third thing is spread. The deposit-guarantee scheme covers you up to one hundred thousand euros per person per bank.
The fourth thing is when you will need the money back. The dashboard shows you the maturity date for each deposit. It also shows you what you will receive. Know these dates so you are not caught short.
Opening a deposit in four steps
First, make sure you have transferred euros into your Investfora account. You do this by bank transfer using the reference shown in your dashboard. The money usually arrives within one to three working days.
Second, log in and look at the fixed-term deposits available. Read the details of each one. Note the bank, the country, the rate, the term length, and the maturity date. Make sure you understand the terms, especially what happens if you need to withdraw early.
Third, decide how much of your cash balance to invest in a deposit, and which deposit. You do not have to invest all your cash; you can leave some in your balance to invest in something else, or to keep available.
Fourth, that is it. Your money is now locked into the deposit. From that moment, the bank is paying you interest at the fixed rate. The dashboard tracks it daily and shows you exactly what you will receive back on the maturity date.
What happens while your money is in the deposit
While the deposit runs, you cannot touch the money without potentially losing interest. This is the trade-off. You get certainty and a known return, but you give up access. Some deposits allow early withdrawal with a penalty; others do not. The terms will make this clear.
Your dashboard updates daily to show you how much interest has been earned so far. This is not money that arrives in your account; it is the cumulative interest building up inside the deposit.
If you have opened multiple deposits, each one is tracked separately. You can see them all on your account at once, each showing its own progress. This makes it easy to remember what matures when and what you have committed to each bank.
During the term, the rate does not change. You are locked in from the start. This is both a strength and a weakness. If interest rates rise in the economy, your rate stays the same. If they fall, your rate stays the same.
When the deposit matures
On the maturity date, the bank releases your money back to Investfora. Your original deposit plus all the interest earned is returned to your Investfora cash balance. This usually happens automatically; you do not need to do anything.
Once the money is back in your cash balance, you have choices. You can open a new deposit with the same bank or a different one. You can move it into business lending, buy cryptocurrency, or use it for trading.
If you want to withdraw the money to your bank account, you can do that too. You would use the withdrawal function in your dashboard, and the money would return to the bank account you transferred it from.
Remember that the value of investments can go down as well as up, and you may get back less than you put in. Fixed-term deposits are among the lower-risk options available, because you know the rate and the return in advance.
Is a fixed-term deposit right for you?
A fixed-term deposit makes sense if you have money you do not need for a defined period, and you want to know exactly what you will receive back. It suits people who value certainty over the possibility of higher returns elsewhere.
A fixed-term deposit might not suit you if you think you might need the money before the term ends, or if you are willing to accept more risk in exchange for the possibility of better returns. It is not a tool for people who want to move money around frequently or who need access to their cash at short notice.
The best approach is to think about your money in buckets. Some money might be for emergencies, some for things you know you will need in two years, some for things you might not need for five years.
If you think a fixed-term deposit fits your situation, the next step is simple. Open an Investfora account, transfer some euros in, and look at what is available. There is no obligation to invest. You can look, compare, and decide whether the terms and rates suit you.
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Geschrieben für Investfora, Teil der LIFT INVESTMENT MANAGEMENT SGEIC SA, CNMV-Register Nr. 244. Dieser Artikel ist allgemeine Information, keine Beratung und keine Empfehlung. Der Wert von Anlagen und Kryptowerten kann steigen und fallen, und du bekommst möglicherweise weniger zurück, als du investiert hast.
