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

For retirement planning, 'term deposits' can be used to secure a portion of retirement savings with guaranteed returns. A retirement planner might advise, 'Incorporating term deposits into your retirement portfolio can provide a stable income stream during your retirement years.'

Practice Scenarios

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.

Accounting

Scenario:

Given the strong financial health of the company this year, we could explore more options to optimize our company's savings. Any ideas?

Response:

An effective way would be to put some of our surplus funds into a term deposit. It's a safe option that guarantees growth.