Lock-Up CD

(redirected from Lock-Up Certificate of Deposit)

Lock-Up CD

A certificate of deposit that the depositor agrees not to trade for the duration of the CD. Because this is not legally binding, a bank issuing a lock-up CD may require the depositor to keep the certificate of deposit at the bank to physically prevent the depositor from trading it. It should not be confused with a lock-up agreement, which is a different concept altogether.