-This is a third type of deposit account you can use as a longer-term investment. Individuals are denied access to their funds for a predetermined period of time in order to earn a greater rate of return. A certificate of deposit is a type of time deposit.
The Federal Deposit Insurance Corporation or FDIC covers many types of deposit accounts. The money in deposit accounts is typically insured. Deposit accounts that are protected by the FDIC are checking accounts, savings accounts, money market deposit accounts and certificates of deposit (CDs).
Currently, deposit accounts are insured up to $250,000 per bank. If you have significantly more than what the FDIC insures in your deposit accounts, speak to your local bank branch to confirm how much of your money is covered by the FDIC and perhaps move some to a different bank.|||A Demand Deposit Account is a checking account. A small amount of interest may be paid. Your money is immediately available. To access your money you "demand" it by using a check or a withdrawal slip at the teller window. A Time Deposit Account is a Certificate of Deposit. You deposit funds into an account for a certain length of time. You lock up your money for that time. If you request early withdrawal you will pay a penalty. It is not a demand account. Time Deposit Accounts pay you higher interest because your money is available to them for a longer time.|||time deposit - account that has money deposited for a period of time. Technically, the bank doesn't have to give you the money until the entire time period has expired.
demand deposit - account that must be returned to the depositor whenever he asks for it (i.e., upon his demand)
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