Fixed Term Deposit in Malta: A Simple Way to Grow Your Savings

Growing your savings does not always have to involve complex investments or constantly monitoring financial markets. If you have money that you do not need to access immediately, a fixed term deposit in Malta can be a simple way to put those savings to work.

A fixed term deposit allows you to place a sum of money with a bank for an agreed period and earn interest on it. With a fixed interest rate and a clear timeframe, you know from the start how your savings will be managed during the term.

Key takeaways

• A fixed term deposit in Malta allows you to put aside money for a set period and earn interest.
• Fixed term deposits generally offer a higher interest rate than normal savings or current accounts.
• They can provide predictable returns without exposure to day-to-day market movements.
• You can choose a term that suits your financial plans.
• APS customers can open an APS Fixed Term Deposit through myAPS.
• Before opening one, consider how long you can comfortably keep the money aside.

What is a fixed term deposit?

A fixed term deposit is an account where you deposit a lump sum for a specific period, known as the term. In return, your money earns interest according to the rate applicable to the deposit.

Unlike money held in an everyday savings or current account, a fixed term deposit is designed for funds you can put aside rather than use for regular expenses.

This makes it particularly useful if you have accumulated savings and want to earn some extra return without moving directly into investments that may rise or fall in value.

How can a fixed term deposit in Malta help grow your savings?

The main advantage is straightforward: your existing savings can earn interest while they remain deposited for the agreed period.

For example, imagine you place €5,000 in a fixed term deposit paying an illustrative annual interest rate of 2% for one year. At the end of the year, the deposit would have generated €100 in gross interest, before any applicable tax.

The actual amount you earn will depend on the amount deposited, the interest rate, the length of the term and how interest is paid.

This predictability can make fixed term deposits useful for people who prefer knowing what return to expect rather than dealing with changes in financial markets.

What are the benefits of a fixed term deposit in Malta?

Earn more from money you already have

Fixed term deposits can offer higher interest rates than standard savings or current accounts, giving you an opportunity to earn additional interest on money you do not currently need.

Predictable returns

Because the interest rate and term are established when you open the deposit, it is easier to understand what your money could earn over that period.

Simple to manage

Once the account is opened and your money is deposited, there is little day-to-day management required. That makes fixed term deposits particularly approachable for people who want their savings to generate a return without regularly managing an investment portfolio.

Add variety to your savings strategy

You do not necessarily have to keep all your savings in one type of account. A fixed term deposit could form part of a broader approach, alongside accessible savings for emergencies and, depending on your circumstances and goals, longer-term investments.

If you are considering how fixed term deposits can fit into your wider financial plans, it can also help to understand common mistakes to avoid when starting to invest. Read our guide on investment decisions to avoid as a beginner to learn more.

What should you consider before choosing a term?

Before opening a fixed term deposit in Malta, think about when you are likely to need the money.

A shorter term may be more suitable if you expect to need the funds sooner, while a longer term could suit money that you are comfortable putting aside for a longer period.

It is also worth comparing the applicable interest rates, minimum deposit requirements and how frequently interest can be paid.

Most importantly, keep enough accessible savings available for unexpected expenses rather than placing money you may need at short notice into a fixed term deposit.

How does the APS Fixed Term Deposit work?

With an APS Fixed Term Deposit, you can put your savings aside for a fixed period and benefit from a higher interest rate than with a normal savings or current account.

Different terms of up to five years are available, as well as deposits in different currencies. Depending on the type of term deposit, interest can be added to your capital or credited to your savings or current account, with different interest-payment frequencies available.

Already an APS customer? You can also open a Term Deposit Account through myAPS, making it easier to get started without unnecessarily complicating the process.

You can explore APS Fixed Term Deposit options and check the latest interest rates before deciding which term may suit you.

FAQs

What is a fixed term deposit?

A fixed term deposit is an account where money is placed with a bank for an agreed period and earns interest during that term.

Are fixed term deposits suitable for beginners?

They can be relatively straightforward to understand because the amount deposited, term and applicable interest rate are established from the beginning.

Can a fixed term deposit in Malta help grow my savings?

Yes. It allows money you already have to earn interest rather than remaining in an account that may offer a lower rate.

How long can I keep money in an APS Fixed Term Deposit?

APS Bank offers different fixed terms of up to five years. Available terms and rates may change, so check the latest information before opening an account.

Can I access my money during the fixed term?

A fixed term deposit is designed for money that can remain deposited until maturity. Always check the applicable terms and conditions before choosing a deposit.

Can I open an APS Fixed Term Deposit online?

If you are an APS customer, you can open a Term Deposit Account through myAPS. You can also visit an APS branch.

Approved and issued by APS Bank plc, APS Centre, Tower Street, B’Kara BKR 4012. APS Bank plc is regulated by the Malta Financial Services Authority as a Credit Institution under the Banking Act 1994 and to carry out Investment Services activities under the Investment Services Act 1994. The Bank is a participant in the Depositor Compensation Scheme and the Investor Compensation Scheme as established under the laws of Malta. Terms and conditions apply and are available on apsbank.com.mt/terms-and-conditions.