Time deposits are savings that are expected to remain on deposit in a financial institution for an extended period.

Question

Quizplus · Accepted Answer

Time deposits, also known as certificates of deposit, are specifically designed to be held for a fixed term, ranging from a few months to several years. During that time, customers receive a higher interest rate than they would on a traditional savings account. However, if they try to access the funds before the maturity date, they may face penalties. Therefore, time deposits are indeed expected to remain on deposit for an extended period.

Time Deposits Are Savings That Are Expected to Remain on Deposit