What is a Term Share?
A Term Share is a savings certificate entitling the bearer to receive dividends. A Term Share bears a maturity date, a specified fixed interest rate and can be issued in any denomination. When you open a Term Share, your money is on deposit for a specific time period. For agreeing to keep it on deposit for a specified time period, you earn more than you would in a regular savings account. If you cash it in before its maturity date, you pay a penalty.
- Will I earn interest on my money if I put it into a Roth IRA?
- What interest rate do you pay on a Term Share?