Time deposit is the same thing as

Step 1: Analyze the question The question asks which banking term means the same as a "time deposit."

Step 2: Explain the concept A time deposit is money placed in a bank for a fixed period (for example 3, 6, or 12 months). The depositor agrees not to withdraw it before the period ends, or else pays a penalty or loses some interest. In return, the bank usually pays a higher interest rate than on ordinary accounts. Because of the fixed period, it is also called a fixed deposit.

Step 3: Check each option

• A. Bank rate: This is the rate at which the Central Bank lends to commercial banks. It is not a type of deposit.
• B. Current account: Money can be withdrawn at any time by cheque. It is a demand deposit and usually earns little or no interest.
• C. Demand deposit: Money is payable on demand. This is the opposite of a time deposit.
• D. Fixed deposit: Money is held for a fixed period at a higher interest rate. This is the same as a time deposit.
• E. Savings account: Withdrawals are allowed fairly freely, with lower interest and no fixed term.

Step 4: Answer The correct answer is D. Fixed deposit.

Tip: Remember the pairing time = fixed (both refer to a fixed time period), and demand = current (money available whenever you demand it). In exams, "time deposit" always points to "fixed deposit."