Time deposit (redirected from Domestic time deposit)

Time deposit

Interest-bearing deposit at a savings institution that has a specific maturity. Related: Certificate of deposit.

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time deposit

An interest-bearing savings deposit or certificate of deposit at a financial institution. Although the deposits formerly included only deposits with specific maturities (such as certificates of deposit), they now are considered to include virtually all savings-type deposits. Compare demand deposit.

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Time deposit. When you put money into a bank or savings and loan account with a fixed term, such as a certificate of deposit (CD), you are making a time deposit.

Time deposits may pay interest at a higher rate than demand deposit accounts, such as checking or money market accounts, from which you can withdraw at any time.

But if you withdraw from a time deposit account before the term ends, you may have to pay a penalty -- sometimes as much as all the interest that has been credited to your account. Some other time deposits require you to give advance notice if you plan to withdraw money.