Banky team Reviewed editorial answerIf you don't know when you will need your money, these two routes differ in rate certainty and in the cost of leaving.
A short deposit that renews: each time its term ends you can take your money without breaking anything. But each renewal's rate is set at that time under the deposit's terms, and no one knows it in advance.
A long certificate: its rate follows its type for the whole term (fixed, stepped on a known schedule, or variable with a reference). If you need to leave early, many certificates cannot be broken in the first 6 months; after that, breaking cuts the return retroactively and you can get back less than you placed. Some banks lend against the certificate instead of breaking it.
Comparing the total return of a short term with the total return of a long term is not a fair comparison, because the terms differ. Look at each route at its own term, and ask yourself: what is the earliest I might need the money, or part of it?
Check the deposit's renewal rules and the certificate's break table in their key-facts statements.