What's the difference between a saving account and a time deposit?

Savings accounts: Accounts maintained by retail banks that pay interest but can not be used directly as money (for example, by writing a cheque). Although not as convenient to use as checking accounts, these accounts let customers keep liquid assets while still earning a monetary return.





Time deposit: A money deposit at a banking institution that cannot be withdrawn for a preset fixed 'term' or period of time. When the term is over it can be withdrawn or it can be rolled over for another term. Generally speaking, the longer the term the better the yield on the money.





It seems those two accounts are just the same,isn't it?|||obviously NOT the same - Time deposit says you can't touch the money for a set period of time


you can always withdraw money from a savings acct at any time or with very little notice|||The difference is really down to the terms and conditions of the individual accounts concerned. The name which the organization gives to a particular account should really try to describe in some way how the account is basically used. A savings account is usually one which provides a safe place for you to put money and expect to an interest upon it. A time deposit tends to be different as it is normally for a fixed rate of interest over a fixed term and it will come to an end at some point in the future. It can be useful if you wish to add your interest before or after a specific date, for instance, if you are going to be a non-taxpayer next year you could arrange for the interest not to be paid until then and then receive it gross.





Kind regards,





John