Listen to ABR

Investment Term Of The Day: Fixed-term Investment

Jan 11, 2021 01:58 PM
Investment Term Of The Day: Fixed-term Investment Investment Term, Africa Business Radio, Fixed-term Investment, Investors, Africa Business News, Fixed Income, Bonds

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. In some cases, even though a fixed term is stated on the investment, the investor or issuer may not have to commit to it.

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. The investor, for the most part, is committed to the fixed term of this financial instrument.

Once a term deposit reaches or approaches maturity, the investor must notify his or her financial institution to either reinvest the money into another fixed-term investment or deposit the cash proceeds into his or her account.

0:00 / 0:00

Get the latest headlines and unique ABR stories, sent every weekday.

Micos Chicken and Waffles

Upcoming Events

Thu 15

Africa Data Protection Conclave

Oct 15 @ 10 AM - Oct 15 @ 03 PM
Sat 10

The Boss Lady Conference 2020

Oct 10 @ 11 AM - Oct 10 @ 01 AM
Wed 17

ABR social sensitization on HIV & AIDs

Jul 17 @ 07 AM - Jul 24 @ 05 AM

Job Listing

Software Developer

Google
2019-07-31
×

Newscast

News Updates

  • Australia Approves Tough New Veto Powers Over Foreign Agreements Amid China Row

  • United States issues travel curbs for Chinese Communist Party members

  • Twitter Bans Content Which ‘Dehumanizes’ Based On Race, Ethnicity

  • Iran Passes Law To Boost Enrichment And Block Inspectors

  • Egypt Accused Of Execution Spree

  • United Nations And Ethiopia Reach Agreement On Aid Pact For War-Hit Tigray

  • Central Bank of Nigeria Directs Banks to Close Naira Accounts for IMTO Proceeds

  • Federal Executive Council Approves N120.7bn for Road Reconstruction

  • Nigerian President To Address Lawmakers Over Insecurity Issues

  • Nigeria Records 122 New COVID-19 Cases