First let’s start with what a fixed deposit actually is. This is where we can begin to explore why fixed deposit rates are lower compared to the returns you can source in decentralised finance.
A fixed deposit is a financial instrument offered by banks which provide customers with a higher rate of interest than an average savings account. This comes with a level of “lock-in” in that this return is only offered if the customer holds his funds in the fixed deposit until the given maturity date.
Decentralised finance eliminates intermediaries by allowing people to conduct peer to peer, or peer to pool transactions using emerging technologies. This means that intermediaries like banks are no longer part of the transaction flow. This greatly reduces the cost of the transactions, passing more value on to the end user.
Imagine how much it takes to run a bank? It is this, compounded with various other market forces that result in the higher returns present in the decentralised finance industry.
Dezy offers an alternative to fixed deposits where you can earn up to 5.65% a year with 0 fees or lock-in. This provides you with flexibility, while also giving you access to higher returns.
