Answer:
ok for change up wording a little bit or else the teacher will tell u you plagerized
Explanation:
Time deposit accounts provide banks with the cash flow they need to lend money to other customers. The bank makes a profit by lending the funds held in time deposit accounts for a higher interest rate than the rate it pays on the time deposits.
A time deposit such as a CD can be purchased at virtually any bank, credit union, or other financial institution. The interest rates paid vary, as do other terms. For example, one bank may offer a higher return but require a larger deposit.
The owner of a time deposit can withdraw the money out if necessary but will lose some or all of the promised interest and may pay penalty fees. The terms are in the fine print that the saver receives when opening the account.
A customer can earn a slightly higher interest rate with a time deposit account than would be available in a standard savings account or an interest-bearing checking account. The better return is offered because the funds remain locked until the maturity date of the account.
Time deposits are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per investment. Those opened at a credit union carry protection from the National Credit Union Administration (NCUA).
A time deposit is an interest-bearing bank account that has a date of maturity, such as a certificate of deposit
The money in a time deposit must be held for the fixed term to receive the interest in full.
Typically, the longer the term, the higher the interest rate that the depositor receives for a time deposit.
Time deposits are an extremely safe investment but they have a low rate of return.
