# Time deposit > Mediated Wiki article. Canonical URL: https://mediated.wiki/source/Time_deposit > Markdown URL: https://mediated.wiki/source/Time_deposit.md > Source: https://en.wikipedia.org/wiki/Time_deposit > Source revision: 1310812777 > License: Creative Commons Attribution-ShareAlike 4.0 International (https://creativecommons.org/licenses/by-sa/4.0/) Bank account with a fixed maturity date This article relies largely or entirely on a single source. Please help improve this article by citing more sources. Find sources: "Time deposit" – news · newspapers · books · scholar · JSTOR (August 2020) Part of a series on financial services Banking Types of banks Advising Banq Bulge bracket Central Commercial Community development Cooperative Credit union Custodian Depository Development Direct Export credit agency Investment Industrial Merchant Middle market Money center Mutual savings Neobank Offshore Participation Payments Postal savings Private Public Retail Savings Savings and loan Universal Wholesale Bank holding company Lists of banks Accounts · Cards Accounts Christmas club Deposit Interest rate Money-market Savings Time deposit (Bond) Transaction (checking / current) Cards ATM Credit Debit Prepaid Funds transfer Cheque Card Electronic Bill payment Instant payment Mobile Wire RTGS NS Direct debit ACH Giro SWIFT Correspondent account CLS CIPS SPFS BRICS PAY Terms Asset allocation management Automated teller machine Bad debt Bank rate List Bank regulation Debanking Bank secrecy Asset growth Capital asset Cash Climate finance Corporate finance Disinvestment Diversification (finance) Eco-investing Economic bubble Economic expansion Enterprise value Enterprise risk management Environmental finance ESG Ethical banking Financial analysis analyst asset economics engineering forecast plan planner services Fractional-reserve banking Full-reserve banking Fundamental analysis Growth investing Hedge (finance) Impact investing Investment advisory Investment management Islamic banking Loan Mathematical finance Mobile banking Money creation Pension fund Private banking Sustainability Sustainable finance Speculation Statistical finance Strategic financial management Stress test (financial) Structured finance Structured product Toxic asset Related topics Asset pricing Bond (finance) Capital structure Corporate finance Cost of capital Equity (finance) Ethical banking Exchange-traded fund Financial law market participants regulation risk system History of banking List of banks Market risk Personal finance Public finance Security (finance) Shares Sustainable Development Goals Systematic risk Systemic risk Time value of money Too big to fail Too connected to fail Watered stock Category Commons Portal v t e A **time deposit** or **term deposit** (also known as a **[certificate of deposit](/source/Certificate_of_deposit)** in the [United States](/source/United_States), and as a **[guaranteed investment certificate](/source/Guaranteed_investment_certificate)** in [Canada](/source/Canada)) is a [deposit](/source/Deposit_account) in a [financial institution](/source/Financial_institution) with a specific [maturity date](/source/Maturity_(finance)) or a period to maturity, commonly referred to as its "term". Time deposits differ from *at call deposits*, such as [savings](/source/Savings_account) or [checking accounts](/source/Checking_account), which can be withdrawn at any time, without any notice or penalty. Deposits that require notice of withdrawal to be given are effectively time deposits, though they do not have a fixed maturity date. Unlike a certificate of deposit and [bonds](/source/Bond_(finance)), a time deposit is generally [not negotiable](/source/Nonnegotiable_and_negotiable_instruments); it is not transferable by the depositor, so that depositors need to deal with the financial institution when they need to prematurely cash out of the deposit. Time deposits enable the bank to invest the funds in higher-earning financial products. In some countries, including the United States, time deposits are not subject to the banks’ [reserve requirements](/source/Reserve_requirement), on the basis that the funds cannot be withdrawn at short notice. In some countries, time deposits are guaranteed by the government or protected by [deposit insurance](/source/Deposit_insurance). ## Interest Time deposits normally earn [interest](/source/Interest), which is normally fixed for the duration of the term and payable upon maturity, though some may be paid periodically during the term, especially with longer-term deposits. Generally, the longer the term and the larger the deposit amount the higher the interest rate that will be offered.[1] The interest paid on a time deposit tends to be higher than on an at-call savings account, but tends to be lower than that of riskier products such as stocks or bonds. Some banks offer [market-linked time deposit accounts](/source/Market-linked_CD) which offer potentially higher returns while guaranteeing principal. ## At maturity At maturity, the principal can be either paid back to the depositor (usually by a deposit into a bank account designated by the depositor) or rolled over for another term. Interest may be paid into the same account as the principal or to another bank account or rolled over with the principal to the next term. The money deposited normally can be withdrawn before maturity, but a significant penalty will normally be payable. ## See also - [Federal Deposit Insurance Corporation](/source/Federal_Deposit_Insurance_Corporation) - [Canada Deposit Insurance Corporation](/source/Canada_Deposit_Insurance_Corporation) - [Guaranteed investment certificate](/source/Guaranteed_investment_certificate) - [Money supply](/source/Money_supply) ## References 1. **[^](#cite_ref-1)** ["Time Deposit"](http://www.investopedia.com/terms/t/timedeposit.asp). *Investopedia*. 2003-11-24. Retrieved 2016-11-01. Authority control databases GND --- Adapted from the Wikipedia article [Time deposit](https://en.wikipedia.org/wiki/Time_deposit) by Wikipedia contributors ([contributor history](https://en.wikipedia.org/wiki/Time_deposit?action=history)). 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