What is the meaning of Time deposit?

When you put money into a bank or savings and loan account with a fixed term, such as a certificate of deposit (CD), you are making a' Time deposit'. Time deposits may pay interest at a higher rate than demand deposit accounts, such as checking or money market accounts, from which you can withdraw at any time. But if you withdraw from a time deposit account before the term ends, you may have to pay a penalty-sometimes as much as all the interest that has been credited to your account. Some other time deposits require you to give advance notice if you plan to withdraw money.