---
title: Time deposit (CD) accounts
slug: concepts/accounts/cds
description: Certificates of deposit (CDs) are fixed-term accounts with set amounts and maturity dates. Early withdrawals usually incur a penalty.
docTags: 
createdAt: 2025-05-04T12:19:35.254Z
---

You might want to offer your customers time deposit accounts. Time deposit (or CD) accounts are sold in specific amounts and with specific maturity dates. If the customer decides to withdraw the funds before the applicable maturity date, they will typically be required to pay a penalty.

A *penalty month* is a configuration that defines the maximum number of months that a penalty applies. For instance, configuring penalty months as **12** would mean that if the money is withdrawn (account is closed) before 12 months have passed, (x) fee days would be withdrawn from the account as a penalty.

*Fee days* define how many days of simple interest to assess as a penalty. COS allows a maximum of 2 penalty tiers for time deposit accounts.

Create a time deposit account with the [open a deposit account](docId\:abKDIZOKHXLSswzwrbBJ1) endpoint. You must have the proper [product ID](docId\:A4xk-yBQUtIA6tNQ5oJKf) and the [customer ID](docId\:Td-K_prObOXEklwM6CnnG) for the account holder.

Other time deposit endpoints available include:

- [Early funds withdrawal](docId\:bHeqF948uoL69C872O299)
- [CD activity](docId:9nAb7NqgEGfIpDq8flDjf)
- [Find out the penalty for early withdrawal from a CD](docId\:e4dAA6XWq3ZPAU6WMqR-c)  

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