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Comparison Guide

Demand deposit vs fixed-term deposit

An in-depth comparison of Demand deposit and Fixed-term deposit, including liquidity, yield, thresholds, and best-fit use cases.

Core comparison table

Aspect Demand deposit Fixed-term deposit
Liquidity Very high (on access) low（early withdrawal）
yield low（0.2%） high（1.0% - 2.0%+）
minimum threshold 1 50（large certificate of deposit20）
Applicable funding scenarios Daily cash flow and emergency reserve funds Medium- to long-term idle assets, ballast against inflation
Use theDemand Deposit Income Simulationtool→ Use theRegular Income Simulationtool→

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notice deposit short-term

Related Questions

When is it more suitable to use a savings account?

When you need frequent access to funds or cannot predict when you will need money, a demand deposit is the most suitable choice. Typical scenarios include emergency reserves, daily cash flow, and liquidity management according to income and expenditure.

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Should I convert to a fixed deposit if the money is only kept for 1 to 3 months?

It depends on the specific term and interest rate difference. If the difference in fixed-term interest rates is large enough and you are sure you won't need the money in advance, you can consider short-term fixed deposits or notice deposits for more than a month. But if there is any uncertainty, the flexibility advantage of a demand deposit is often greater.

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What is the difference between a demand deposit and a notice deposit?

There is a difference. Notice deposits usually have a higher interest rate than regular demand deposits, but require advance notice to the bank before withdrawal. If your funds are parked for a short period and you can accept the notice requirement, notice deposits can increase your earnings; for pure liquidity needs, demand deposits are more convenient.

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Further Reading