Fixed Term

Describes an investment vehicle, usually some kind of debt instrument, that has a fixed time period of investment. With a fixed-term investment, the investor parts with his or her money for a specified period of time and is repaid his or her principal investment only at the end of the investment period.

A common example of a fixed-term investment is a term deposit, in which the investor deposits his or her funds with a financial institution for a specified period of time and cannot withdraw the funds until the end of the time period, or at least not without facing an early withdrawal penalty. This is the opposite of a demand deposit, in which the investor is free to withdraw his or her funds at any time. As a price for the convenience of withdrawal at any time, demand deposits generally pay lower interest rates than term deposits.


Investment dictionary. . 2012.

Look at other dictionaries:

  • fixed term — UK US noun [C] ► a period of time that has been agreed: »She was hired for a fixed term of three years. »There is no flexibility to change the arrangement until the end of a fixed term. »We employed her on a fixed term contract, for two years. →… …   Financial and business terms

  • fixed-term — ˌfixed ˈterm f125 [fixed term] adjective only before noun a fixed term contract, etc. is one that only lasts for the agreed period of time …   Useful english dictionary

  • fixed term — pastovusis termas statusas T sritis fizika atitikmenys: angl. fixed term vok. Festterm, m; Grenzterm, m; unveränderlicher Term, m rus. постоянный терм, m pranc. terme fixe, m …   Fizikos terminų žodynas

  • fixed-term — adjective Only lasting for an pre arranged time. Have you got an indefinite or a fixed term contract of employment? …   Wiktionary

  • fixed-term — adj. Fixed term is used with these nouns: ↑contract …   Collocations dictionary

  • fixed-term — /fɪkst tɜ:m/ adjective lasting for a fixed number of years …   Dictionary of banking and finance

  • Fixed Term Employees (Prevention of Less Favourable Treatment) Regulations 2002 — form a UK statutory instrument aimed to protect employees who have fixed term contracts. It is meant to implement EC Directive 99/70/EC on fixed term workers.LawThe principle of the Directive on which the Regulations are based is simple: a person …   Wikipedia

  • fixed term employee — An employee working under a fixed term contract of employment, which is terminable either: On a set date or after a set period (for example, for six months or on 8 June). On the occurrence or non occurrence of a specific event (for example, a… …   Law dictionary

  • fixed-term contract — A contract that terminates on a set date or after a set period (for example, after six months) or on the occurrence or non occurrence of a specific event (for example, a maternity cover contract). A fixed term contract can be either full or part… …   Law dictionary

  • fixed term contract — ➔ contract1 …   Financial and business terms

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