Fixed Rate Deposit

How does a Fixed Rate Deposit work?

With a Fixed Rate Deposit, you lock in your money for an agreed period. In return, you receive a fixed and often higher interest rate.At DNB, you can choose between 3, 6, 12 and 24 months. You can start a Fixed Rate Deposit with a deposit amount from NOK 10 000. This is lower than many other banks, and makes it easier for more people to start saving in a Fixed Rate Deposit.

When you lock in your money at a fixed interest rate, you get a secure and predictable rate of return.When the fixed term is over, all deposits and accrued interest are automatically converted to an ordinary Savings Account.

Remember! The savings amount must be transferred to the fixed rate account within 10 days from when you order the Fixed Rate Deposit.

Three monthsFixed term deposit = 4,20 % per annum, minimum NOK 10 000

Six months Fixed term deposit = 4,40 % per annum, minimum NOK 10 000

Twelve months Fixed term deposit = 4,45 % per annum, minimum NOK 10 000

Twenty-four months Fixed term deposit = 4,00 % per annum, minimum £10,000

See the price list for deposits over £8 million

The interest rate you lock in is fixed for the entire period, regardless of any interest rate changes.

Advantages and disadvantages of Fixed Rate Deposits

There are many good advantages to choosing Fixed Rate Deposits as a savings option, especially if you already have some savings in different forms. This savings option comes with specific terms linked to the fixed-rate period, interest rate and withdrawals, which means that Fixed Rate Deposits are not suitable for everyone.

Advantages

Predictability: You can be certain that the interest rate you have locked in will not change or be affected. You know exactly how much your savings will grow.

Peace of mind: Your money and interest rate will not be at risk from fluctuations in the equity or interest rate market. In addition, all deposits are covered by the Norwegian Banks' Guarantee Fund With up to two million kroner.

Better interest rate terms: The interest rate you receive with a Fixed Term Deposit will generally be slightly higher than on a regular savings account without a fixed term. You also have the option of other High interest accounts. Here you often need to deposit larger amounts to achieve the same interest rate terms.

Disadvantages

The funds are locked:The funds are locked for the entire period. Therefore, do not deposit more than you are comfortable locking in. Consider your purpose for saving the money in a Fixed-Rate Deposit for the specified period.

Cost of early withdrawal:If you withdraw funds before the fixed term expires, you will pay a fee of 1% of the withdrawal amount. Therefore, consider whether you may need the funds during the period you lock them in. If you already have an emergency fund, you will be more secure if something unexpected happens.

Minimum savings requirement: Fixed-Rate Deposit has an amount limit and you must have a minimum deposit of NOK 10 000 at the start. Fixed-Rate Deposit is therefore best suited for you if you can deposit a larger amount. Other savings methods, such as Funds, allows you to start saving with smaller amounts from NOK 100.

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