What are time deposits in banks?

Time deposits refer to those deposits, in which the amount is deposited with the bank for a fixed period of time.

Additional Information:-

Fixed deposits refer to those deposits, in which the amount is deposited with the bank for a fixed period of time.

1. Such deposits do not enjoy chequeable facility.
2. These deposits carry a high rate of interest.

Features of time deposits:

1. They are non-chequeable deposits.
2. They carry interest which varies directly with the period of time
3. Depositor generally makes only two transactions: (i) Deposit of Money in the beginning: (ii) Withdrawal of money on maturity.