Time deposit

Time deposit — a bank deposit locked for a fixed term (30 days to 5 years) at a fixed rate, paying more than ordinary savings in exchange for the lock; early withdrawal forfeits most interest. Interest takes the 20% final withholding tax. Useful for the deep half of an emergency fund and for parking known future expenses — and least attractive when locked long at the bottom of a rate cycle.

First used in: 1.3 · The floor: cash, digital banks, deposits