What it is
In the context of time deposits, a rollover is the term for choosing to put your money into another time deposit at the end of the original time deposit’s term.
Depending on the bank, you may be able to have this done automatically, until you choose to end it at the next maturity or if you decide to pre-terminate the deposit. You may even be able to decide if you will rollover both the principal and the interest, or just the former.
If the bank doesn’t have an automatic rollover feature, you can still do it manually. On maturity, when you get your money back plus the interest earned, you can choose to put it in another time deposit.
What it means for you
Choosing to rollover your time deposit means that you’re OK with the returns that you’ve been getting, and/or you want to maintain the allocation you’ve decided to give this investment type.
In such cases, having an auto-rollover feature would be a great benefit for you. That way, you won’t have to remember when maturity happens, and you can be confident that your money will remain in a time deposit until you plan to use it.
