Which of the following accurately describes a time account?

A time account, also known as a time deposit, is characterized by the requirement that funds must be maintained for a specific period to earn interest. The option stating that it requires funds to be deposited for a minimum of 7 days accurately captures this essence. Time accounts often have predetermined terms, such as 30 days, 90 days, or longer, during which withdrawals typically incur penalties if funds are accessed before the term concludes.

This structure incentivizes account holders to maintain their deposits for the entire term, as they receive a higher interest rate compared to other account types. The requirement of a minimum deposit period—like the 7 days mentioned—helps to clarify the nature of the time account as distinct from more flexible savings accounts, which do not impose such restrictions.