Meaning & use
term deposit
Last updated
Meaning
nouncountable
A bank account in which money is left for a fixed period in return for a higher interest rate.
Grammar: Countable: you can say 'a term deposit' or 'term deposits'.
Patterns
- open a term deposit
- put money in a term deposit
- a term deposit matures
She put her savings into a two-year term deposit.
Term deposits usually pay more interest than regular savings accounts.
If you withdraw early from a term deposit, you may lose some interest.
Word forms
| plural | term deposits |
|---|
Common combinations
- open a term deposit
- I opened a term deposit at my local bank.
- a fixed-term deposit
- He chose a fixed-term deposit to get a better rate.
- term deposit rate
- The term deposit rate is currently 3.5%.
- mature
- My term deposit matures next month.
Synonyms and how they differ
- certificate of deposit
- The usual American term for the same product; use it in US contexts.
- time deposit
- A more formal or technical term used in banking, especially in international contexts.
Commonly confused: term deposit or savings account?
term deposit vs savings account
A savings account lets you take money out anytime; a term deposit locks your money away for a set period.
Practice
Which sentence uses 'term deposit' correctly?
Choose one answer.
A term deposit is a bank account for saving money, so 'opened a term deposit to save' fits. The others use it like a loan, a bill, or a film, which is wrong.
Make it your own
Write a sentence using “term deposit”, then check it and compare it with the examples above.