time deposits

Meaning

1. 1nounpluralfinance

   Sums of money placed in a bank for an agreed period during which the saver cannot withdraw it without a penalty, in return for higher interest.

   Grammar: Plural form of time deposit; use a time deposit for one account: she opened a time deposit.

   Patterns

   • put money into time deposits
   • hold time deposits
   • time deposits with someone

   The bank offers better rates on time deposits than on regular savings.

   Many retirees keep part of their savings in time deposits.

   Early withdrawal from time deposits usually costs you some of the interest.

Word forms

Common combinations

open a time deposit

He opened a time deposit for twelve months.

break a time deposit

Breaking a time deposit early may cost you three months of interest.

interest on time deposits

Interest on time deposits is paid when the term ends.

short-term time deposits

The firm parked its spare cash in short-term time deposits.

time deposit rates

Time deposit rates rose after the central bank raised its rate.

Synonyms and how they differ

fixed deposit

Fixed deposit is the usual term in British and Indian English, while time deposit is more common in American and international banking.

term deposit

Term deposit is common in Australia and Britain and means almost the same thing, so it is a regional choice rather than a different product.

certificate of deposit

A certificate of deposit is the American product with a paper or electronic certificate, so it is a specific kind of time deposit.

Opposites

Word family

deposit noun

money placed in a bank account

deposit verb

to put money into an account

depositor noun

a person who puts money in a bank

Commonly confused: time deposits or demand deposits?

Practice

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