There is a vast variety of banking deposits and interest-bearing accounts nowadays, with all sorts of interesting banking products available to customers.
Before you go ahead and open a deposit, however, it's advisable to think a little about your saving intentions. That is to say, how much do you want to save, and how? And, more importantly, for how long?
First of all, bank deposits usually don't entail any kind of risk for the investor, so opening one guarantees that, as long as you don't want to cash it in early, you'll be making a return from the moment you place the deposit. Payback times are, therefore, a key element for determining the return to be made on the invested capital. This means that a deposit in which the investor undertakes not to touch the money for five years could generate higher interest than one with a term reduced by just a few months. In this regard, there are short fixed-term deposits out there, which are variable and can be tailored to suit customer needs.
Of course, we must not overlook the option of interest-bearing accounts when on the subject of term accounts and deposits. What this version of a savings accounts has in common with deposits is that it is risk free, whereas it differs from deposits in that it does not require a minimum withdrawal period to be set. So, in an interest-bearing account, interest is generated from the capital available therein, and the money can be withdrawn by the holder at any time. Logically, the interest is usually lower than in the case of a deposit, although that does not make them less appealing given the flexibility they provide to the investor.
A different realm entirely to that of deposits is, however, that of long-term savings plans, such as pension plans. In this type of plan, the withdrawal conditions are considerably more demanding, since if the sum is withdrawn for reasons other than retirement, extraordinary grounds for release would have to be given, such as a sudden lay-off or incapacity to work. However, in these types of savings plans it is possible to factor in the investment risk.