Definition

1. Noun:
   • A savings account in which the deposit is held for a fixed term or in which withdrawals can be made only after giving notice or with loss of interest: A type of bank account designed for saving money, where access to the funds is restricted. The account holder agrees to keep the money deposited for a specific period (a fixed term) or must provide advance notice to make a withdrawal. If these conditions are not met, the account holder may lose some or all of the accrued interest.

Usage

• A deposit account is a formal agreement with a financial institution. It is used to save money while earning interest, with the understanding that the funds are not intended for immediate, everyday spending.
• It is typically contrasted with a current account or checking account, which allows for frequent and easy access to funds but usually offers little or no interest.

Examples

• Noun:
  • I opened a deposit account with a one-year term to earn a higher interest rate on my savings.
  • To withdraw money from my deposit account, I have to give the bank 30 days' notice.
  • If you break the term of your deposit account, you will incur a penalty and lose the interest for that period.

Advanced Usage

• "Fixed-term deposit account": Often used interchangeably with "time deposit" or "certificate of deposit (CD)". This specifies that the money is locked in for a predetermined period.
  • The bank is offering a competitive rate on a two-year fixed-term deposit account.
• "Notice deposit account": A type of deposit account where the saver must notify the bank a specific number of days before making a withdrawal.
  • My savings are in a 90-day notice deposit account, which offers better interest than an instant-access account.

Variants and Related Words

• Savings Account (n): A broader category of account for saving money, which may include instant-access accounts with fewer restrictions than a typical deposit account.
• Time Deposit (n): Synonymous with a fixed-term deposit account.
• Certificate of Deposit (CD) (n): A specific type of time deposit account, common in the United States, represented by a certificate.
• Demand Deposit (n): The opposite concept; an account (like a checking account) where funds can be withdrawn "on demand" without notice.

Synonyms

• Time deposit account
• Savings deposit
• Term account

Related Phrases

• To place funds on deposit: To put money into a deposit account.
  • She decided to place her bonus on deposit to earn interest.
• Maturity of a deposit account: The date when the fixed term ends and the funds, plus interest, become available without penalty.
  • The deposit account reaches maturity next month, and I will then decide whether to reinvest the money.

Noun

1. a savings account in which the deposit is held for a fixed term or in which withdrawals can be made only after giving notice or with loss of interest