Fixed-term investments which, as a general rule, are invested with a credit institution, for a minimum of 30 days at a fixed interest rate, in order to earn a higher interest rate than with demand deposits Time deposits principally take the form of fixed deposits
A deposit set aside intact for a specified period of time or until its maturity date, say, 30 days, before its funds could be withdrawn In case of withdrawal prior to the maturity date, a written notice is required before withdrawal, in which case, a certain provision for pre-termination will apply Back to Top
Certificate of deposits or savings accounts that are held in a financial institution for a set amount of time The funds cannot be withdrawn until the depositor gives the institution notice Technically, certificates of deposit do not require any notification to withdraw since the date is set beforehand
A relationship carrying a specified maturity date, usually bearing interest and restricting the depositor’s ability to make withdrawals before the maturity date
For Custodial Accounts, a Time Deposit refers to funds deposited in a savings account or certificate of deposit held in a fnancial institution for a fixed term or with the understanding that the depositor can withdraw the funds only by giving prior notice The notice period required must not exceed seven days after the date on which the monies are deposited Repurchase agreements and commercial paper are not included in this definition (Source: FHLMC Single-Family Seller/Servicer Guide, Glossary) Money held in savings accounts not subject to demand withdrawal
A bank savings deposit account subject to at least 30 days' notice before withdrawal of funds Thirty days' notice is the dividing line, used by the Federal Reserve System, between time and demand deposits