Definition of Time deposit:
A deposit in a bank account that cannot be withdrawn before a set date or for which notice of withdrawal is required.
Time deposits generally pay a slightly higher rate of interest than a regular savings account. The longer the time to maturity, the higher the interest payment will be.
A time deposit is an interest-bearing bank account that has a pre-set date of maturity. A certificate of deposit (CD) is the best-known example. The money must remain in the account for the fixed term in order to earn the stated interest rate.
Depository institution (such as a bank, credit union, or a finance or insurance company) account that pays higher than savings account interest rates but imposes conditions on the amount, frequency, and/or period of withdrawals. A certificate of deposit (CD) is normally issued only for time deposits. Also called fixed deposit.
How to use Time deposit in a sentence?
- Time deposits are an extremely safe investment but they have a low rate of return.
- A time deposit is an interest-bearing bank account that has a date of maturity, such as a certificate of deposit (CD).
- The money in a time deposit must be held for the fixed term to receive the interest in full.
- Even a time deposit at the local bank carries penalties: you generally lose all the interest if you withdraw your money before the contracted maturity date.
- Typically, the longer the term, the higher the interest rate that the depositor receives.
- You may want to put some of your cash in a time deposit so that you can get more interest on it while it is there.
- My friend told me that he was fine with the limitations the time deposit would put on him and he created it anyways.
- My CD, or time deposit , at the local bank down the street is for five years, but they will penalize me if I try to withdraw earlier than that.
Meaning of Time deposit & Time deposit Definition