• Term Deposit Account Meaning
• Term Deposit Account Definition
• Term Deposit Account Opening Form

A time deposit or term deposit (in the United States also known as a certificate of deposit) is a deposit in a financial institution with a specific maturity date or a period to maturity, commonly referred to as its “term”. Time deposits differ from at call deposits, such as savings or checking accounts, which can be withdrawn at any time, without any notice or penalty. Deposits that require notice of withdrawal to be given are effectively time deposits, though they do not have a fixed maturity date.

An individual's or company's account at a COMMERCIAL BANK into which the customer can deposit cash or cheques and from which he or she can draw out money subject to giving notice to the bank. Complete a J Trust Royal account opening application form in the branch. STEP 3: Provide an initial minimum deposit of: US$1,000 for USD Term Deposit Account Equivalent US$1,000 for KHR Term Deposit Account; STEP 4: Show valid identification: your national identity card or passport.

Term Deposit Account Meaning

Unlike a certificate of deposit and bonds, a time deposit is generally not negotiable; it is not transferable by the depositor, so that depositors need to deal with the financial institution when they need to prematurely cash out of the deposit.

Term Deposit Account Definition

Term Deposit Account Opening Form

Time deposits enable the bank to invest the funds in higher-earning financial products. In some countries, including the United States, time deposits are not subject to the banks’ reserve requirements, on the basis that the funds cannot be withdrawn at short notice. In some countries, time deposits are guaranteed by the government or protected by deposit insurance.

Interest[edit]

Time deposits normally earn interest, which is normally fixed for the duration of the term and payable upon maturity, though some may be paid periodically during the term, especially with longer-term deposits. Generally, the longer the term and the larger the deposit amount the higher the interest rate that will be offered.^[1]

The interest paid on a time deposit tends to be higher than on an at-call savings account, but tends to be lower than that of riskier products such as stocks or bonds. Some banks offer market-linked time deposit accounts which offer potentially higher returns while guaranteeing principal.

At maturity[edit]

At maturity, the principal can be either paid back to the depositor (usually by a deposit into a bank account designated by the depositor) or rolled over for another term. Interest may be paid into the same account as the principal or to another bank account or rolled over with the principal to the next term.

The money deposited normally can be withdrawn before maturity, but a significant penalty will normally be payable.

See also[edit]

References[edit]

1. ^'Time Deposit'. Investopedia. 2003-11-24. Retrieved 2016-11-01.

The Sathapana Bank's term deposit account allows you to choose a fixed period for your deposit starting from 3 month up to 60 months while earning high interest rates. Available in Khmer Riel, US Dollar or Thai Baht. Our term deposit gives you the flexibility to manage your fund with maximum returns. If you wish to withdraw your money before the maturity date, the prevailing savings rate applies.

Features

Notes:

* Opening THB Account is applicable at designated branches only. Please contact us for more information.
* Interest rates are subject to change at the bank's sole discretion without prior notice to clients.
* Commercial Banks, Specialized Banks and Micro Finance Institutions, Insurance Companies and other forms of Financial Institutions (FI) are excluded.