Meaning of the word "short-term deposit" in English

What does "short-term deposit" mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.

short-term deposit

US /ʃɔːrt tɜːrm dɪˈpɑː.zɪt/
UK /ʃɔːt tɜːm dɪˈpɒz.ɪt/
"short-term deposit" picture

Noun

a sum of money placed in a bank account for a relatively brief period, typically less than one year, often earning a fixed rate of interest

Example:
The company decided to put its excess cash into a short-term deposit.
Interest rates on a short-term deposit are usually lower than those for long-term investments.