A time deposit (also known as a term deposit, particularly in Canada, Australia and New Zealand; a bond in the United Kingdom; fixed deposits Fixed Deposits in India and in some other countries) is a money deposit at a banking institution that cannot be withdrawn for a certain "term" or period of time (unless a penalty is paid)[citation needed]. When the term is over it can be withdrawn or it can be held for another term. Generally speaking, the longer the term the better the yield on the money. A certificate of deposit is a time-deposit product.

The opposite is a demand deposit also known as sight deposit or "on call" which can be withdrawn at any time, without any notice or penalty; e.g., money deposited in a checking account or savings account in a bank.

The rate of return is higher than for savings accounts because the requirement that the deposit be held for an integer multiple of the term gives the bank the availability to invest it in a higher gain financial product class. However the return on this type of product is generally lower than that of investments in riskier products like stocks or bonds.

A deposit of funds in a savings institution is made under an agreement stipulating that (a) the funds must be kept on deposit for a stated period of time, or (b) the institution may require a minimum period of notification before a withdrawal is made.