A Term Deposit (TD), also known as “fixed deposit” is a deposit that is held at a financial institution for a fixed term. A fixed deposit account allows customers to deposit money for a set period of time, thereby earning a higher rate of interest in return. These are of varying maturities ranging anywhere from a day or a month to a few years. When a term deposit is placed, the lender (the customer) understands that the money can only be withdrawn after the term has ended and in case of premature withdrawal, the financial institution can levy a penalty. In some cases, the customer may be required to give notice of withdrawal of term deposit (in that case termed as ‘notice deposits’). When the term is over, the deposit can be withdrawn or it can be held for another term, partly or fully. Generally speaking, the longer the term the better is the yield on the money.
To view term deposit accounts entered into the system go to Liabilities -> Term deposits. There is a report with five columns:
- Profile - indicate the person/company which owns the term deposit account
- Code - term deposit account code
- Created At - term deposit created date
- Open Date - term deposit account open date
- Term Deposit Officer - the term deposit officer who opened the term deposit account
- Status - term deposit account status (IN PROGRESS or OPEN)