Term deposit

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As opposed to a demand deposit, interest-bearing deposit in a contractual amount with a specified term and interest rate.

The cash funds are therefore blocked until the end of a given term. Generally speaking, the return of the blocked funds may not be requested before the end of the term specified in the contract signed between the customer and the bank (without penalties).

In return for the funds being blocked, the customer receives an interest rate similar to that of the money market rate.

 

Source: FBF