Why Term Deposit?

The investor must understand when buying a term deposit that they can withdraw their funds only after the term ends. In some cases, the account holder may allow the investor early termination or withdrawal if they give several days' notice. Also, there will be a penalty assessed for early termination.

Key Takeaways

• A term deposit is a type of deposit account held at LOMS Investment account where money is locked up for some set period of time.
• Term deposits are usually short-term deposits with maturities ranging from one month to a few years.
• Typically, term deposits offer higher interest rates than traditional liquid savings accounts, whereby customers can withdraw their money at any time.

Feel confident knowing exactly how much your money will earn. Lock-in a competitive interest rate from as short as 1 month to as long as 2 years.

Special offers

• 6.10% p.a. for 12 months Special offer available from 12 November 2025 for a limited time only. Conditions apply.*

Features & Benefits

• Fixed return on your investment
  With our Term Deposit, if you don’t need immediate access to these funds you have the security of locking in a fixed rate of return, giving you greater peace of mind.
• Choose from a range of terms
  You can choose from a range of terms to suit your needs. Anything from 1 month to 2 years.
• Safe and secure
  Combined balances of up to UGX 20,000,000 per account holder are guaranteed and secured by Uganda Deposit Protection Fund (UDPF)
• Keep track of your investment
  View, track and manage your Term Deposit alongside your other accounts
• Help when you need it
  We’re Ugandan Micro Financing institution, with an extensive branch network across the country, and all agent-based specialists in Uganda. We’re here to help you with your investment and your future plans.

Fees & Charges

There are no set up or establishment fees.

If you want to withdraw your Term Deposit before it matures you’ll need to give us 31 days' notice. You may incur a prepayment interest adjustment and administration fee.

Opening or Closing a Term Deposit

Term deposits are also called certificates of deposit. Customers can view the conditions of the term deposit via a paper statement or our online portal. This statement includes the required minimum principal amount, the interest rate paid, and the duration (or time to maturity), as agreed by the bank and the depositor. If a customer wants to close a term deposit before the end of the term, or maturity, the customer will be subject to a penalty. This penalty may include the loss of any interest paid on the deposit account until that point. Closing the CD before the term ends let the customer take back the principal amount invested, but with the forfeiture of the earned interest. The penalty for withdrawing prematurely or against the agreement is stated at the time of opening a term deposit, When a term deposit is nearing its maturity date, we will usually send a letter notifying the customer of the upcoming maturity. In the letter, the bank will ask if the customer wants the deposit renewed again for the same length to maturity