A time deposit (also known as a term deposit, particularly in Canada, Australia and New Zealand; a bond in the United Kingdom) is a money deposit at a banking institution that cannot be withdrawn for a certain "term" or period of time. When the term is over it can be withdrawn or it can be held for another term. Generally speaking, the longer the term the better the yield on the money. A certificate of deposit is a time-deposit product.
The opposite is a sight deposit which can be withdrawn at any time.
A deposit of funds in a savings institution is made under an agreement stipulating that (a) the funds must be kept on deposit for a stated period of time, or (b) the institution may require a minimum period of notification before a withdrawal is made.
Elements of risk: Odaki Kazuhiko examines the "tragedy" of Japan's time-deposit-based economy. (Viewpoints).
Nov 01, 2002; THE Japanese economy is characterized by a high savings rate, which means that a relatively small portion of the GNP each year is...