A time deposit that earns interest is a .

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A time deposit that earns interest is commonly known as a certificate of deposit (CD). CDs typically offer higher interest rates than traditional savings accounts, but also require the depositor to commit to leaving the funds in the account for a specified period of time, known as the term. This term can range from a few months to several years. At the end of the term, the depositor can either withdraw the funds and interest earned, or roll them over into a new CD.

A Time Deposit That Earns Interest Is a