A bank account in which deposists earn interest, and withdrawals from which require notice. In the U.K. the commercial banks formally require seven days' notice of withdrawal although this is often waived. Until 1971 interest was paid by the bank at a rate fixed by agreement between the clearing banks and normally 2 per cent below bank rate. Since that date, banks have been obliged to fix their rates individually. Deposit accounts are called time deposits in the U.S. and savings accounts in France and other European countries.
|Reference: The Penguin Business Dictionary, 3rd edt.|