Term deposits in Morocco: what to do with surplus cash

Your account has shown a comfortable balance for months and your banker suggests a term deposit. The question to ask is not “what does it pay” but “is this money genuinely surplus, or is it the working capital I will need in six weeks?” The yield is counted in points; the cost of an early exit is counted immediately.

1. What a term deposit actually pays

The rates below come from a tariff schedule published by a Moroccan bank, in force since May 2025. They do not hold for every bank or every amount, and they are negotiable on significant sums.

Product	Published rate
T	e	r	m		a	c	c	o	u	n	t		o	r		d	e	p	o	s	i	t		c	e	r	t	i	f	i	c	a	t	e	,		6		m	o	n	t	h	s
1	.	7	5	%

The first observation is that the exit penalty is of the same order of magnitude as the annual yield. In other words, an early withdrawal does not merely dent the gain: it can cancel it entirely. The placement therefore only makes sense if the duration is certain.

The second is that on a 100,000-dirham surplus placed for a year, the gross gain is around 2,000 dirhams before tax. That is real money, but it does not justify weakening operating cash.

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2. What is left after tax

Interest on a placement is not exempt income. It is taxable financial income subject to withholding at source, which widens the gap between the published rate and what you actually receive.

• The published rate: The gross yield announced at subscription, on which comparisons between institutions are made.
• Withholding at source: Deducted by the bank from the interest paid. It is then set off according to your regime, but it reduces the cash received immediately.
• The accounting treatment: Interest attaches to the year it concerns, not the moment it is paid. A deposit straddling two years calls for an accrual entry.
• The net result: What remains after tax, to be compared not with zero but with the cost of your existing borrowing.

That last comparison is the one people forget. Placing money at 2% while paying far more on an overdraft amounts to borrowing dear in order to lend cheap. Repaying or reducing expensive debt pays better than any cash placement.

3. Deciding what to place, and for how long

The method is to segment the cash before placing anything. A surplus is only surplus relative to a horizon.

1. Identify the working capital the business needs: that amount is not placed, however large it looks.
2. Set aside sums already owed to third parties: VAT collected, tax withheld, contributions to be remitted.
3. Keep a safety cushion covering a few weeks of fixed costs.
4. What remains after those three deductions is the only genuinely placeable surplus.
5. Then choose a term shorter than the horizon at which you might need the money, never the reverse.

The second step surprises the most owners: part of the balance they believe is surplus is money collected on the State’s behalf. Ring-fencing it in a dedicated account is a more profitable precaution than any placement, because it avoids a late-payment surcharge.

That separation is set out in our guide to ring-fencing your cash.

4. The till’s role in this decision

Knowing how much you can lock up means knowing what is due in and out over the coming weeks. Without that visibility, a placement is a bet on your own activity, and the early-withdrawal penalty punishes bad bets.

BelloPOS records your sales with their VAT and, in the Pro version, tracks the settlement of your invoices: you know what was invoiced, what has been collected and what remains due. The software does not see your bank accounts and offers no placements: it gives you the material for the calculation, the decision to lock up or not belonging to the owner and their banker.

Mistakes to avoid

• Placing a balance without segmenting it — Part of the balance is VAT and contributions to be remitted. That is not surplus, it is money already owed.
• Comparing the rate with zero — It compares with the cost of your debts. Reducing an overdraft pays more than any term deposit.
• Forgetting the tax on interest — The net return after withholding is appreciably below the published rate. Always reason in net terms.
• Choosing a long term to gain a quarter point — The yield difference between six and twelve months is small; the risk of needing the funds doubles.

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Frequently asked questions

What is the difference between a term account and a deposit certificate?

Both lock funds up for a return. The certificate is a security issued against the deposit, while the term account remains an account. In practice the published rates are close and the logic is identical.

Are the rates negotiable?

On significant amounts, yes. Published schedules are a starting point, and a large surplus justifies asking for better, as with any banking condition.

Can I get the funds back in an emergency?

Generally yes, against the penalty set in the contract. Check that amount before subscribing: that line, more than the rate, determines whether the placement suits you.

How is the interest accounted for?

As financial income, attached to the year it concerns. A deposit straddling two years requires an accrual entry for interest earned at the closing date.

What to take away

A term deposit pays little and the early-withdrawal penalty is of the same order as the annual yield: it suits only a surplus whose duration is certain. Segment your cash first, set aside what you already owe the State, and compare the rate not with zero but with the cost of your existing borrowing.

Sources

The figures and rules quoted above come from these pages, read on the date given in the article.

• Al Barid Bank, 2026 tariff schedule, read 8 September 2026
• Bank Al-Maghrib, banking supervision and customer protection, read 8 September 2026
• Ministry of Economy and Finance, General Code of Accounting Standardisation, read 1 September 2026

Read next

Other practical guides on the same subject:

• Separate bank accounts: ring-fencing VAT and charges in Morocco
• Authorised overdrafts in Morocco: how the charges are calculated
• A 12-month cash-flow plan for Morocco: model and scenarios
• Short-term treasury advances in Morocco: discounting, overdraft or supplier terms