Definition

1. 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

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