2 different deposit type accounts: Only deposit or can I save on top?

[coloc]

Excuse my ignorance but I've been looking at the 2 best buy threads for:

Term Deposits (Fixed Lump Sum Savings)
Lump Sum Deposits (Variable Rate Savings)


My (probably wrong!) understanding is:

Term Deposits (Fixed Lump Sum Savings): You put a lump sum into account for a certain period of time. You CAN'T add to this lump sum, it's simply depositing a lump sum and getting interest at end of year?
Lump Sum Deposits (Variable Rate Savings): You put in a lump sum into account for a certain period of time. You CAN add to this over the period of account.

OR is the keyword "Deposit" in both accounts : ie: I can't save anymore than the initial Deposit in either account, the only difference between them is a standard rate of interest in one and a variable rate of interest in another?

If someone could clear my head about this, in really simple terms, I'd appreciate it, I've a real mental block when it comes to these Deposit accounts!

 

[chlipps]

Your first interpretation is correct

Fixed..means fixed quantity of money for fixed period of time at a fixed interest rate. Cannot add or remove from the account....if you do you will be penalised

Lump sum... you can add or withdraw when suits you..at a variable interest rate (but note some lump sum deposit accounts have a limited number of withdrawals so study that as well as the interest rate before setting it up). In this type of account you can add in more money when ever you want...but beware that some of these accounts have upper limits whereby interest rate may change

best of luck...hope this helps

 

[Lightning]

Term Deposits (Fixed Lump Sum Savings)You put a lump sum into account for a certain period of time. You CAN'T add to this lump sum, it's simply depositing a lump sum and getting interest at end of year?

You get the interest at the end of the term normally, not the end of the year. The term varies from term deposit to term deposit.

You cannot add to the deposit but you can open a new/second term deposit deposit.

Lump Sum Deposits (Variable Rate Savings): You put in a lump sum into account for a certain period of time. You CAN add to this over the period of account.

Exactly.