I have a payment due on a known date: how do I choose the deposit term?

When you have a goal on a known date, such as school or university fees, the key point is that the product matures before the payment date or on it. Time deposits run from about a week to about two years, while certificates usually run for several years, so near-term goals are usually covered by a deposit, though the terms on offer differ from bank to bank. If you choose a term longer than your horizon and need the money early, breaking usually lowers the return for the period already held and claws back what was overpaid. A hypothetical example per 100 EGP in a deposit at 20% with monthly payout, broken after 8 months: 13.33 EGP was paid out; if the bank recomputes that period at 17%, the return for it is 11.33, so 2 EGP comes back out of your principal and you receive 98 EGP. If you choose a shorter term, watch the automatic renewal so the money is not locked again before the payment. Check the key-facts statement for how the break penalty is calculated, when breaking is allowed, and how many business days you have to cancel renewal.