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Variable-Rate Certificate of Deposit
(redirected from Variable Rate Certificate)

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Variable-Rate Certificate of Deposit
A certificate of deposit for which the interest rate changes according to some formula at set intervals. Investors use variable-rate certificates of deposit when they want a low-risk investment but expect prevailing interest rates to rise during the life of the CD. See also: Variable-rate bond.

variable-rate certificate of deposit
A certificate of deposit that pays a rate of interest that changes at predetermined intervals according to a specified formula or a key interest rate. This savings instrument is most appropriate if the investor expects short-term interest rates to rise before the certificates mature.


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Products and services that interSTATE NET BANK will offer includes fixed and variable rate Certificates of Deposit with 50% lower minimum balance requirements, Checking Accounts and higher interest rates, cash management online products and reduced wire fees as well as special lending services for residential, automobile, commercial and accounts receivable loans.
5 million 2009 variable rate certificates of participation (COPs) rated 'A+', Outlook Stable by Fitch.
The variable rate certificates will pay debt service quarterly, and have a weighted average life of 2.
 
 
 
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