---
title: "Time Deposits (CDs): definition, formula, and thresholds"
description: "Time deposits are certificates of deposit (CDs) with a fixed maturity and rate. Smaller, retail CDs are reasonably stable; large 'jumbo' CDs above the insurance limit are more rate-sensitive and treated as a less reliable funding source."
canonical_url: https://www.bankregreports.com/glossary/time-deposits/
source: BankRegReports
category: "Liquidity & Balance Sheet"
units: "$"
schedule: "Schedule RC-E"
---

# Time Deposits (CDs)

> Time deposits are certificates of deposit (CDs) with a fixed maturity and rate. Smaller, retail CDs are reasonably stable; large 'jumbo' CDs above the insurance limit are more rate-sensitive and treated as a less reliable funding source.

## Formula

```
Time Deposits = CDs ≤ $250k (retail) + CDs > $250k (jumbo/uninsured)
```

Schedule RC-E reports time deposits split at the $250,000 insurance threshold. Retail CDs at or below the limit behave more like core deposits; jumbo CDs above it are rate-chasing money that leaves when a competitor pays more.

## Why it matters

Time deposits are a more expensive and less stable funding source than checking and savings. A bank leaning heavily on CDs (especially jumbo and brokered CDs) pays up for funding and faces rollover risk when those deposits mature in a competitive rate market.

## How to read it

Read time deposits as a share of the funding base and watch the jumbo portion. A rising CD share signals the bank is paying for growth it can't fund with core deposits; heavy reliance on uninsured jumbo CDs adds both cost and flight risk.

## Thresholds

| Range | Reading | What it means |
|---|---|---|
| Low, retail-heavy | Strong | Modest CD reliance, mostly insured retail. |
| Moderate | Adequate | Reasonable time-deposit share. |
| High / jumbo-heavy | Watch | Costlier, more rate-sensitive funding mix. |
| CD/brokered-dependent | Concern | Funding leans on hot money with rollover risk. |


## Worked example

A bank funding 40% of deposits with CDs (half of them jumbo balances above $250k) pays materially more for funding than a checking-funded peer and must compete on rate every time those CDs mature, a recurring source of margin and liquidity pressure.

## Questions

### Are CDs considered core deposits?

Retail time deposits at or below the $250,000 insurance limit are generally counted as core. Jumbo CDs above the limit are excluded from core deposits because they are rate-sensitive and prone to leave.

### Why are jumbo time deposits riskier funding?

Balances above the insurance limit are uninsured and typically chase the best rate, so they are quick to leave for a competitor and quick to run in a stress event, making them a less stable funding source.

## Sources

- [FFIEC Call Report Schedule RC-E (Deposit Liabilities)](https://www.ffiec.gov/sites/default/files/data/reporting-forms/FFIEC031_FFIEC041_202606_i.pdf) (PDF)

## Related metrics

- [Total Deposits](https://www.bankregreports.com/glossary/total-deposits/): Total deposits is the sum of all money customers have placed with a bank (checking, savings, money market, and time deposits) across domestic and foreign offices. It is a bank's primary and cheapest source of funding.
- [Brokered Deposits](https://www.bankregreports.com/glossary/brokered-deposits/): Brokered deposits are deposits a bank obtains through a deposit broker, a third party that places its customers' money at the bank, instead of directly from depositors. The brokered deposits ratio is brokered deposits divided by total deposits; heavy reliance on them is a supervisory red flag because the money is rate-sensitive and can leave quickly.
- [Core Deposit Ratio](https://www.bankregreports.com/glossary/core-deposit-ratio/): The Core Deposit Ratio measures 'core' deposits (total deposits less time deposits over $250,000 and less brokered deposits of $250,000 or less) as a percentage of total deposits. Core deposits are the most stable, lowest-cost funding source available to a bank.
- [Noninterest-Bearing Deposits](https://www.bankregreports.com/glossary/demand-deposits/): Noninterest-bearing deposits, primarily demand deposit accounts (checking), are balances on which a bank pays no interest. They are the cheapest, stickiest funding a bank can have and a key driver of net interest margin.

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