Definition of 'Term Deposit'
A deposit held at a financial institution /or bank that has a fixed term. These are generally shortterm with maturities ranging anywhere from a 1 month to a few years. When a term deposit is purchased, the lender (the customer) understands that the money can only be withdrawn after the term has ended /or by giving a predetermined no.of days notice.
Expertsmind.com explains 'Term Deposit'
Term deposits are an extremely safe investment & are therefore very appealing to conservative, low-risk investors. By having the money tied up you will generally get a higher % of interest with a term deposit compared with a demand deposit.