I've got some money sitting in my checking account that I'm not using. I've seen there are deposits with interest rates of 3-4%, but I'm not sure if it's still worth it or if there are better options for money I won't touch for years.
How urgent is it for you to have access to that money over the next few years?
Look, if you're really not going to touch it, 3-4% is still better than letting it sit and rot in your checking account where you barely make anything. The thing is, those interest payments barely cover inflation - depending on how things go, you could still be losing purchasing power anyway. What I did was split it up: part in a fixed deposit so I can sleep at night, and I put another chunk into safer investment funds but with the potential to earn a bit more, though obviously there's volatility and fees you've gotta look at carefully.
If your timeline is really years out and you don't need the money, it's worth looking into what's out there beyond just a fixed deposit - index funds, bonds, fixed-income funds. But that's all down to how much risk you're willing to take on. A fixed deposit is the most boring thing but also the safest.
A fixed-term deposit with that interest rate is still a decent option if you need something safe and hassle-free, especially with the Deposit Guarantee Fund backing it up. The thing is, with inflation and all, those percentages won't make you rich, but at least your money won't lose value. If you've got several years to leave your cash sitting there, you could also compare investment funds or Treasury bills, though there's more variability depending on the timing. The truth is it really depends on your risk tolerance and when you'll need access to your money, but a fixed-term deposit is still the most stress-free option for anyone who doesn't want any surprises.
I've got some money in deposits like that myself, and honestly, it really depends on what you need. If it's money you're not going to touch for years, a 3-4% annual rate is fine to sleep soundly, but you have to keep in mind that inflation eats into that. The thing is, a lot of banks in 2026 offer those rates only for the first few months and then they drop, so before you sign anything, make sure you check carefully how long that rate lasts. If it's really money you don't need soon, I'd combine a deposit with something a bit more aggressive like index funds or bonds, but that already depends on how much risk you can stomach.
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