In deposit terminology, the term Time 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 Funds placed in a Time Deposit usually cannot be withdrawn prior to maturity or they can perhaps only be withdrawn with advanced notice and/or by having a penalty assessed.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 Time 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, Time 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 time deposit is in common usage in the Philippines, Japan and China, time deposits are also known as term deposits in countries like Australia, Canada and New Zealand, fixed rate bonds in the UK, certificates of deposit(CD) in the United States and as fixed deposits in South Africa.