Definition

Noun: A time deposit is a type of bank deposit, such as a certificate of deposit (CD), that has a fixed term. This means the money must remain in the account for a specified period. Withdrawals can only be made after giving the bank advance notice or by waiting until the agreed-upon future maturity date. In return for this commitment, the bank typically pays a higher interest rate compared to a regular savings account.

Usage

A "time deposit" is a formal financial term used to describe a specific savings product offered by banks and financial institutions. It is used when discussing personal finance, banking, and investment options. - It is commonly referred to by its abbreviation, CD (Certificate of Deposit). - The term emphasizes the contractual time element of the deposit agreement.

Examples

• Noun:
  • She put her savings into a time deposit to earn a better interest rate.
  • The bank offers a one-year time deposit with an annual percentage yield of 3.5%.
  • Unlike a checking account, you cannot access funds in a time deposit without penalty before the maturity date.

Advanced Usage

• "to place funds in a time deposit": to invest money in a certificate of deposit.
  • Conservative investors often place funds in a time deposit for capital preservation.
• "the maturity of a time deposit": the date when the deposit term ends and funds become available without penalty.
  • Upon the maturity of the time deposit, you can withdraw the principal and interest.

Variants and Related Words

• Certificate of Deposit (CD) (n): The most common specific type of time deposit. These terms are often used interchangeably.
  • He purchased a certificate of deposit at his local credit union.
• Term Deposit (n): A synonym for "time deposit," more commonly used in some countries like the UK, Canada, and Australia.
  • The interest rate for a 6-month term deposit is very competitive.

Synonyms

• Certificate of Deposit (CD): A specific, common type of time deposit.
• Term Deposit: An equivalent term used in many non-U.S. English-speaking regions.
• Fixed-Term Deposit: Emphasizes the fixed, unchangeable period of the deposit.

Related Phrases

• Early withdrawal penalty: The fee charged for taking money out of a time deposit before its maturity date.
  • If you need the money early, you will incur an early withdrawal penalty.
• Maturity date: The specified future date when the time deposit term ends.
  • Mark your calendar for the maturity date so you can decide what to do with the funds.

Noun

1. a certificate of deposit from which withdrawals can be made only after advance notice or at a specified future date