Why open a fixed-term account: let us grow your savings

Fixed-term accounts are popular investments, as they offer several advantages other forms of investments do not. Most of us want to save and fixed-term accounts offer us the opportunity to do so whilst also generating money from our savings.

Here is all you need to know about opening a fixed-term account.

What is a fixed-term account?

A fixed-term account is a cash investment made at a financial institution such as a bank. Your money is invested for a set interest rate over a fixed amount of time, or term. When you invest your money in a fixed-term account you understand that your money is there for a set period of time, usually between one to five years and that the interest rate will not change over this period of time. You usually can only withdraw your money once the term is up.

Why get a fixed-term account?

There are a number of advantages to getting a fixed-term account. Here are the five top reasons why you should save your money in a fixed-term deposit account:

  1. It’s simpleContrary to many financial products, a fixed-term account is easy to understand. It is also easy to operate. Once you’ve set up your account there’s nothing to do until it’s maturity.
  2. It’s low riskWith a fixed rate of interest, there is little to no chance of losing your money so if you are a cautious saver, this is the investment for you.
  3. Your money is locked awayWith a fixed-term account you can’t take your money out for an impulse buy so having your money locked away like this helps you from blowing your hard-earned cash on a boozy night out or a car you didn’t need and regretted buying later. The lack of flexibility helps you save your money.
  4. No hidden feesOne of the great things about a fixed-term account is that there are no annual service or start-up fees.
  5. They are guaranteed by the government
  6. Your capital and your interest rate are guaranteed by MeDirect. Over and above, accounts are guaranteed up to €100,000 by the Malta Financial Services Authority (MFSA) under the Depositor Compensation Scheme.

Make an educated decision

It is also important to be aware of the downsides to a fixed-term account. Having done your research before will help you avoid unnecessary disappointments in the long run. Here are five cons to opening a fixed-term account:

  1. Your money isn’t accessibleThis is the fundamental principle on which a fixed-term account operates: once your money is locked away, you cannot touch it until the term ends.
  2. No extra depositsJust as you can’t take out money, you can’t add money to your fixed-term account. This might be a hassle if you’re a regular saver, but one way around it might be to open multiple fixed accounts with staggered maturity dates.
  3. Less flexibilityWhile low risk is a good thing, the flip side to this is that it’s not a very flexible savings option as are, for instance, savings or notice accounts.
  4. You might regret your decision if rates increaseIf you open a savings or a notice account and market interests increase, then your savings account interest is also likely to increase. However, as the name implies, a fixed-term deposit account is fixed for both the term and the rate, and even if market rates go up, your interest rate on the account will remain at the original (lower) rate.
  5. Relatively low investment returns
  6. Fixed deposits almost always pay a higher interest than a regular, day-to-day savings account. However, because fixed deposits are very low risk investments, they offer lower returns relative to other investment options (e.g. mutual funds, shares, bonds etc).

Start saving now

If you’ve been thinking of investing your money, now is the time. It is easy to set up a savings account and by doing so you can make your money work for you without having to do anything. With an interest rate of 1% when locking your savings for one year, MeDirect makes it easy to start saving with as little as €100.

And to make it easier, MeDirect are giving you the facility of becoming a customer from the comfort of your home by completing a short questionnaire through our website when clicking Become a Customer.

Click here to find out more and to open a term deposit account online today. 


MeDirect Bank (Malta) plc, company registration number C34125, is licensed by the Malta Financial Services Authority under the Banking Act (Cap. 371). The Bank is a participant in the Depositor Compensation Scheme established under the Maltese laws. Rate quoted is gross of tax on a per annum basis. Interest is paid into a savings account. Terms and Conditions apply.

BlackRock Commentary: Real resilience in sustainability

Jean Boivin, Head of BlackRock Investment Institute, together with Brian Deese, Global Head of Sustainable Investing, Elga Bartsch, Head of Marco Research, and Andre Bertolotti, Head of Global Sustainable Research and Data, all part of the BlackRock Investment Institute, share their insights on global economy, markets and geopolitics. Their views are theirs alone and are not intended to be construed as investment advice.

We have pointed to a tectonic shift toward sustainability, and how the global pandemic has accelerated this process. This highlights the need for real resilience in portfolios to guard against risks ranging from vulnerable global supply chains to the intensifying effects of climate change. We see room for sustainable assets to outperform in the long transition to a low-carbon world.

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Source: BlackRock Investment Institute and BlackRock Sustainable Investing, with data from the World Resource Institute, June 2020. Notes: WRI defines water stress as the ratio of total water withdrawals to available renewable surface and groundwater supplies. Higher water stress levels indicate more competition among water users. Water withdrawals include those from irrigation, livestock, industrial use, and domestic sectors. Available supplies capture natural runoff as well as the impact of upstream water use and dam operations on downstream water availability. Water stress assesses on WRI’s five point scale, ranging from “low” to “extremely high” (1 to 5) for illustrative purposes only. Forward-looking estimates may not come to pass.


Water stress – when demand for water exceeds supply – is an underappreciated risk that cuts across regions, asset classes and sectors. It is a component of growing climate-related risks such as hurricanes, wildfires and flooding, and threatens public health, production facilities and global supply chains. Large cities will need to strengthen their water infrastructure. Within a decade, much of the world will lie in regions of high water stress, projections by the World Resources Institute show. Northern Africa is one high-risk zone, as seen by the red tones in the chart above. The risks also have geopolitical dimensions, as highlighted by a recent spat over a large hydroelectric project in Ethiopia that neighbors Egypt and Sudan fear could reduce water availability. Combining climate modeling with the geolocation of physical assets can help investors get a better handle on the risks to companies and their human capital.

Companies in water-stressed locations may need to spend more to source water, to raise water efficiency and to meet more stringent environmental regulations. Regulators are zeroing in on water-related risks: A recent European Central Bank report included water stress among the physical climate risks it may require financial institutions to manage and disclose.

The causes of water stress are varied. Population growth and urbanization increase demand for water and strain resources. At the same time, climate change is shifting the distribution of water supply by disrupting precipitation patterns. The agricultural, textile, energy, industrials, chemicals, pharmaceutical and mining industries account for around 70% of freshwater usage globally, according to the Carbon Disclosure Project’s 2018 Global water report. The risks from water stress are most acute in water-intensive industries. In the agricultural sector, reduced water availability for irrigation can lower crop yields. In electric utilities, water is critical for cooling thermal power plants. In real estate, climate-related risks such as water stress could accelerate a tenant preference for “green” buildings. And the creditworthiness of some countries, states and municipalities facing water shortages could come under threat due to rising costs to fortify water resources.

We believe increased asset flows into sustainable investing strategies in 2020 are part of a tectonic shift that could last decades. A societal shift toward sustainability and growing awareness of related risks are behind these flows. Climate-related events such as extreme weather are already causing real financial damage, as we detailed in Getting physical in April 2019. We believe many of the risks are not yet priced in by financial markets. A strategic tilt toward assets that score highly on sustainability may mitigate the risks, helping provide real resilience in portfolios.

Bottom line: Companies resilient to water stress and other climate-related risks may fetch a premium in the transition to a low-carbon economy. Better understanding and quantifying the risks can help investors mitigate exposures and potentially exploit any mispricing. Investors today have more options than ever before to integrate sustainability into portfolios. This includes thematic investing that targets specific sustainability trends – and new benchmarks that offer broad market exposures while providing a tilt to sustainability.


Market Updates

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Past performance is not a reliable indicator of current or future results. It is not possible to  invest directly in an index. Sources: BlackRock Investment Institute, with data from Refinitiv Datastream , July 2020. Notes: The two ends of the bars show the lowest and highest returns versus the end of 2019, and the dots represent year to date returns. Emerging market (EM), high yield and global corporate investment grade (IG) returns are denominated in U.S. dollars, and the rest in local currencies. Indexes or prices used are: spot Brent crude, MSCI USA Index, the ICE U.S. Dollar Index (DXY), MSCI Europe Index, Bank of America Merrill Lynch Global Broad Corporate Index, Bank of America Merrill Lynch Global High Yield Index, Datastream 10 year benchmark government bond (U.S. , German and Italy), MSCI Emerging Markets Index, spot gold and J.P. Morgan EMBI index.

Market backdrop

Activity has started to normalize in both Europe and North Asia, albeit with localized lockdowns to contain virus clusters. The pandemic is still spreading in the U.S. and many emerging markets. The unprecedented policy response has boosted risk assets. Europe has agreed on a historic recovery fund, but U.S. stimulus is now at risk of fading. Wrangling over the size and makeup of a new U.S. fiscal package has started as key benefits are set to expire and states face huge budget shortfalls. We could see a $1-1.5 trillion fiscal package that extends some (but not all) federal stimulus measures through late-2020.

Week Ahead

  • July 28th: U.S. consumer confidence
  • July 29th: Federal Reserve rate decision and media briefing
  • July 30th: U.S. Q2 GDP
  • July 31st: China NBS Manufacturing PMI; euro area Q2 GDP

U.S. consumers confidence is in focus this week amid a sharp rise in virus infections across many states. The pandemic’s spread is starting to weigh on mobility – a key gauge of economic activity, as detailed in our Midyear Outlook – as more people practice social distancing. The number of airport travelers has started to fall again and restaurant bookings have been flat. GDP data this week will show how hard the virus hit the U.S. and euro area economies in the second quarter.

BlackRock’s Key risks & Disclaimers:

This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed are as of July 27th, 2020 and may change. The information and opinions are derived from proprietary and non-proprietary sources deemed by BlackRock to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by BlackRock, its officers, employees or agents. This material may contain ’forward looking’ information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this material is at the sole discretion of the reader.

The information provided here is neither tax nor legal advice. Investors should speak to their tax professional for specific information regarding their tax situation. Investment involves risk including possible loss of principal. International investing involves risks, including risks related to foreign currency, limited liquidity, less government regulation, and the possibility of substantial volatility due to adverse political, economic or other developments. These risks are often heightened for investments in emerging/developing markets or smaller capital markets. 

Issued by BlackRock Investment Management (UK) Limited, authorized and regulated by the Financial Conduct Authority. Registered office: 12 Throgmorton Avenue, London, EC2N 2DL.

MeDirect Disclaimers:

This information has been accurately reproduced, as received from  BlackRock Investment Management (UK) Limited. No information has been omitted which would render the reproduced information inaccurate or misleading. This information is being distributed by MeDirect Bank (Malta) plc to its customers. The information contained in this document is for general information purposes only and is not intended to provide legal or other professional advice nor does it commit MeDirect Bank (Malta) plc to any obligation whatsoever. The information available in this document is not intended to be a suggestion, recommendation or solicitation to buy, hold or sell, any securities and is not guaranteed as to accuracy or completeness.

The financial instruments discussed in the document may not be suitable for all investors and investors must make their own informed decisions and seek their own advice regarding the appropriateness of investing in financial instruments or implementing strategies discussed herein.

If you invest in this product you may lose some or all of the money you invest. The value of your investment may go down as well as up. A commission or sales fee may be charged at the time of the initial purchase for an investment and may be deducted from the invested amount therefore lowering the size of your investment. Any income you get from this investment may go down as well as up. This product may be affected by changes in currency exchange rate movements thereby affecting your investment return therefrom. The performance figures quoted refer to the past and past performance is not a guarantee of future performance or a reliable guide to future performance. Any decision to invest in a mutual fund should always be based upon the details contained in the Prospectus and Key Investor Information Document (KIID), which may be obtained from MeDirect Bank (Malta) plc.

How to start saving: saving with us pays off

Take care of the pennies and the pounds will take care of themselves. How true is this saying? Indeed, most of us are looking for ways to cut back on our spending. By looking at where you’re spending your money and by cutting back just a little bit on a number of spending habits, it is possible to save a substantial amount each month. Rather than spending your money on everyday treats, such as getting the morning takeaway coffee or buying the latest fashionable item, think of the bigger rewards you could treat yourself to, like for example being able to travel to your dream destination. You will also get peace of mind that you have a nice nest egg to tide you over should you get sick or lose your job.

Here are some tips on expenses you can easily cut back on:

Bring lunch from home

You can easily spend anything between €10 to €15 a day on a lunch when you eat out, which equates to some €50 to €75 a week. Why not pack some of your leftovers from your weekend lunch or evening meal, or perhaps even prepare some lunches at home? The advantages here are twofold: you’re not just saving money, but you are also cutting back on wasting food.

If you are in the habit of eating out more than once a day, then preparing meals at home, can help you save even more.

Pass on that cappuccino

Admittedly stopping for a takeaway coffee on your way to work can become an easy habit to look forward to. But takeaway coffees are far more expensive than making your coffee at home or at the office and by cutting back on this daily habit you will certainly help contribute towards your savings.

Do you really need all that data?

It is easy to get caught up in a mobile plan where you sign up for more than you actually need. Perhaps it started out as a promotional offer, however you are now paying significantly more. Switching your plan can be a simple way of cutting down on expenses. 

Stop paying interest

Don’t let your credit cards run into the red by making sure you pay them off on time and in full every month. The interest charges on credit cards can really add up, so you can save the money you would otherwise spend on paying the interest. This is one of the best ways of saving – avoiding getting into debt.

Give yourself an allowance

Budgeting how much to spend each month will surely help keep your expenses in check. However, everybody deserves a treat every now and then and therefore putting some money aside for you to spend however way you want will still help you save in the long run, because it allows for some splurges but stops you from overspending.

Try store brands

You can substantially cut down on your grocery expenses by buying supermarket products. These are normally cheaper than other well-known brands. Having said that, before you go and buy those 20 packets of supermarket brand cereal, buy one pack to try it out first and ensure that you actually like it. Some supermarkets are better at one kind of food, say tinned foods, while others may produce better toiletries, so you might want to start shopping at different supermarkets. Also look out for any promotional offers that stores might have, such as buy two for the price of one, or reduced prices due to imminent expiry dates.

Stay healthy

It is no surprise that getting sick can be costly – not just because you cannot work, but also because of medical bills. Keep your health in check and have an annual check-up. Also, visit the doctor sooner rather than later if you are unwell. Maintaining a healthy lifestyle can also help you avoid the health complications that come with being overweight and will help you reduce or stop other unhealthy costly habits such as smoking and alcohol consumption.

Start saving now

Saving brings the peace of mind that many of us crave.  It is easy to set up a savings account and by doing so you can make your money work for you without having to do anything. With an interest rate of 1% when locking your savings for one year, MeDirect makes it easy to start saving with as little as €100.

And to make it easier, MeDirect are giving you the facility of becoming a customer from the comfort of your home by completing a short questionnaire through their our website when clicking Become a Customer.

Click here to find out more and to open a term deposit account online today. 


MeDirect Bank (Malta) plc, company registration number C34125, is licensed by the Malta Financial Services Authority under the Banking Act (Cap. 371). The Bank is a participant in the Depositor Compensation Scheme established under the Maltese laws. Rate quoted is gross of tax on a per annum basis. Interest is paid into a savings account. Terms and Conditions apply.


We strive to ensure a streamlined account opening process, via a structured and clear set of requirements and personalised assistance during the initial communication stages. If you are interested in opening a corporate account with MeDirect, please complete an Account Opening Information Questionnaire and send it to corporate@medirect.com.mt.

For a comprehensive list of documentation required to open a corporate account please contact us by email at corporate@medirect.com.mt or by phone on (+356) 2557 4444.