What are deposits at a bank or other financial institution that pay interest but cannot be withdrawn on demand?

Question

Quizplus · Accepted Answer

Term deposits are deposits at a financial institution that pay interest but cannot be withdrawn on demand. They require the customer to commit to a specific period of time, called the term, during which the money is locked in the account. The longer the term, the higher the interest rate. This option is suitable for customers who want to earn a higher interest rate on their savings and can afford to leave their money in the account for an extended period.

B) Growth deposits, yield deposits, and dividend deposits are not commonly used terms in banking and finance, and therefore, not the best choice for this question.

What Are Deposits at a Bank or Other Financial Institution