term-deposit

Vocabulary Word

Definition

'Term deposit' is a type of bank account where you put in money for a specific length of time. The bank pays you interest for keeping your money there, but if you take it out early, there's usually a penalty.

Examples in Different Contexts

In personal finance, investing in a 'term deposit' is considered a low-risk option for earning interest on surplus funds. A financial advisor might recommend, 'A term deposit is a safe way to grow your savings without the risk associated with stock market investments.'

Practice Scenarios

Tech

Scenario:

Our financial app's latest version needs to enhance user engagement. I suggest we provide more investment options for maximizing their savings.

Response:

To engage users, we could add an easy-to-use term deposit option. It would give users a straightforward way to grow their savings.

Business

Scenario:

Our annual operating budget has gone underutilized this year. What are some ways we can yield a return on it?

Response:

I've been thinking about this. How about putting a portion into a term deposit account? Doing this would ensure a solid return.