Term account: advantages and disadvantages

Why choose a forward account? 🏦

The term account appeals to many savers thanks to its simplicity and security. But, like any savings product, it also has certain limitations.

The benefits of the term account ✅

Capital security 🔒

The CAT is a risk-free investment: the capital is guaranteed and you recover all of your deposit at maturity.

Interest rate known in advance 📈

Unlike regulated booklets whose rate can change, the CAT allows you to know exactly your earnings upon subscription.

No hidden fees 🚫

No opening, management or closing fees. Everything you earn corresponds only to the interest generated.

Flexibility of duration ⏳

You choose the period that suits your needs: very short placement (1 month) or longer (up to 10 years).

Adapted to occasional capital 💡

The CAT is often used to temporarily place a large sum of money (inheritance, real estate sale, exceptional bonus) before reinvestment.

The disadvantages of the term account ❌

Blocked funds 🔐

Your money is not available before the deadline. In case of urgent need, an early withdrawal leads to a decrease or even the suppression of interest.

Limited yield

The CAT offers a higher remuneration than regulated savings books, but often lower than other investments such as life insurance, SCPI or stock exchange.

Taxable taxation 📊

The interest on the term account is subject to the PFU (30%) or the progressive scale. Unlike the livret A or the LDDS, they are not tax-exempt.

In summary

👉 The term account is perfect for prudent savers who prioritize security and predictability. On the other hand, it is less suitable for investors seeking a high return or immediate liquidity.