time deposit account
Học thuậtThân thiện
Definition
- Noun:
- A type of savings account: A "time deposit account" is a bank account where money is deposited for a predetermined, fixed period. Access to the funds is restricted until the end of this term.
- An interest-bearing account with conditions: It is an account that typically offers a higher interest rate than a regular savings account, in exchange for the depositor agreeing not to withdraw the money for a specified time or by providing advance notice.
Usage Examples
- Noun:
- She opened a time deposit account with a one-year term to earn a better interest rate.
- Withdrawing money early from a time deposit account often results in a financial penalty.
Advanced Usage
- "to place funds in a time deposit account": to deposit money into this specific type of account.
- The company decided to place its excess cash in a time deposit account for six months.
Variants and Related Words
- Certificate of Deposit (CD) (n): A common type of time deposit account in the United States, represented by a certificate.
- He bought a CD as a low-risk investment.
- Term deposit (n): A synonym frequently used outside of the United States.
- Banks in Canada and Australia often advertise term deposits.
Synonyms
- Term deposit: An account with a fixed maturity date.
- Fixed deposit: An account where the deposit amount and period are fixed.
Related Phrases
- Early withdrawal penalty: The fee or loss of interest incurred for accessing funds before the account's maturity date, a key condition of a time deposit account.
- The early withdrawal penalty made him reconsider taking the money out.
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