In deposit terminology, the phrase Term Deposit refers to a savings account or certificate of deposit that pays a fixed rate of interest until a given maturity date. Funds placed in a Term Deposit usually cannot be withdrawn prior to maturity or they can perhaps only be withdrawn with advanced notice and/or by having a penalty assessed.
For example, a Term Deposit will often be used by individuals, businesses and financial institutions around the world as a means of storing their liquid funds for a fixed period of time for future use. In the retail market, Term Deposits are relatively safe investments when provided by insured financial institutions such as banks, savings and loan corporations and credit unions that are duly regulated within the country in which they operate. Also, while the phrase 'term deposit' is in common usage in countries like Australia, Canada and New Zealand, term deposits are also known as certificates of deposit in the United States, as fixed rate bonds in the United Kingdom, time deposits in Japan and China and as fixed deposits in India.