Can you explain how does a "time deposit" works?

as far as i know, one will deposit a certain amount / required amount to open a time deposit. however, im still not cleared on how it works. will the money you deposited gain/earn interest?|||Do you mean a 'one time deposit?'





Other than that, so long the account is an interest bearing one, I would assume that yes, it most certainly will gain interest over time, I don't see why not.|||A Time Deposit is just what it says. You deposit a certain amount of money into an account and agree to leave that money in the account for a certain length of Time. It earns a certain amount of interest which will be paid either monthly or quarterly. The other rule to it is, IF you should withdrawal the money BEFORE your TIME period is up, you must pay a penalty on the funds that you withdrawal. That penalty is based on how long you agreed to leave the money in the account. It can run anywhere from 1 month to 6 months penalty. So if withdrawn early in the deposit period, you could actually lose some of the money you invested, due to the fact of having to pay the penalty and if it had not earned that much in the interest earned, it would come from the principal. Hope this helps you.