|WikiProject Finance & Investment||(Rated Start-class, Low-importance)|
- [savingsaccountfinder.com.au/term-deposit-accounts/ Term Deposit Accounts Comparison]
"You cannot withdraw" - Is this strictly accurate?Edit
I'm pretty sure that with most fixed term deposits you can make withdrawals BUT with financial penalties (i.e. forfeiting the interest one has thus far accrued. the time deposits can be broken at any time but with lower interst than the orginal interst.
Fractional Reserve BankingEdit
Are time deposits considered a form of fractional reserve banking? When a time-deposits time is up, where does that money come from (when the depositer withdraws that money)? Are reserves kept? Fresheneesz (talk) 08:39, 15 November 2010 (UTC)
Since in many cases time deposits can be demanded with a resulting loss of interest and perhaps a small fee they are demand deposits which have no requirement to be backed by reserves. This can be the case because most time deposits are not demanded - until of course they all are, in which the government and central bank all act in concert to ensure money is available as required as quickly as possible.
In practice only about a fifth of countries in the world have required reserves of cash or bankers balances held at the central bank. In the case of the USA which does not have required reserves on some term deposits, a bank can automatically get an overdraft from the federal reserve when it electronically sends funds to another bank using Fedwire. Banks also commonly ask customers wanting to make large cash withdrawals to order the money for delivery the next day and have global limits (NZD2000 in New Zealand) on what can be withdrawn by a customer from all of the banks ATM's combined for that day.
Via the money market and electronic systems for trading securities, a bank can easily get cash deposits at the fed, as an electronic figure, which it can use to get banknotes from its local federal reserve bank or another bank. Banks are often physically situated very close to each other and in many cases they share arrangements and lines of credit and so forth, and are encouraged to have these kind of funding arrangements in place by the central banks.
In the case of the UK all of the Bank of Englands stocks of off balance sheet banknotes are already held off balance sheet with the private members of the Note Clearance Scheme so any non-member of NCS can get banknotes by selling securities in the BOE organised CREST system and use the bankers balances obtained to get cash from other money market players, some of whom already have vast piles of cash in their own private warehouses held off balances sheet on behalf of the BOE. Group 4, who refill the UK ATM's are members of NCS. — Preceding unsigned comment added by Andrewedwardjudd (talk • contribs) 12:35, 6 April 2011 (UTC)
Merge with "Certificate of Deposit"?Edit
I would like to suggest that this page be merged with Certificate of Deposit. They are practically the same but they are from different sides of the world. By merging the two articles, we could cover the entire worldview of CD's/TD's in one article. — Preceding unsigned comment added by Rohan s pandey (talk • contribs) 17:13, 13 June 2015 (UTC)