Savings Accounts vs Term Deposits: Which Pays More After Rate Rise?
Listen to the story
Banks have raised their interest rates. This means people can earn more money when they save. Now, many people ask a question. Should they use a savings account or a term deposit?
A savings account lets you take your money out at any time. A term deposit is different. You must leave your money in the bank for a fixed time. In return, the bank often pays a higher rate.
One bank called BforBank has a new offer. It gives a rate of 3.10%. People say this is a very good deal. It is one of the best offers this year.
Experts are now comparing different savings accounts for 2026. They want to help people choose the best place for their money. The right choice depends on how soon you need your money.
If you may need your money soon, a savings account is safer. If you can wait, a term deposit might pay more. Banks hope these new offers will attract more customers.
Vocabulary15 words
- interest rate
- the extra money a bank pays you for saving
- savings account
- a bank account where you keep money and can take it out anytime
- term deposit
- money you leave in the bank for a fixed time
- rate
- a number that shows how much extra money you earn
- deal
- an offer that is good for the customer
- compare
- to look at two things to see which is better
- fixed
- something that cannot change
- customer
- a person who uses a bank or shop
- offer
- something a company gives you, like a special price
- attract
- to make people want something
- bank
- a place that keeps and manages money
- money
- what people use to buy things
- choice
- deciding between two or more things
- safe
- not risky; not likely to cause loss
- earn
- to get money for something you do
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Quiz
Answer key
1. Comparing savings accounts and term deposits 2. 3.10% 3. False
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Fill-in-the-blank listening
Play the audio again and fill in the missing words as you listen.
Banks have raised their _____ rates.
Should they use a savings account or a _____ deposit?
A savings account lets you take your money out at any _____.
You must leave your money in the bank for a fixed _____.
In return, the bank often pays a higher _____.
One bank called BforBank has a new _____.
It gives a rate of _____ %.
People say this is a very good _____.
Experts are now _____ different savings accounts for 2026.
Banks hope these new offers will _____ more customers.
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