certificate of deposit


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Related to certificate of deposit: negotiable certificate of deposit

Certificate of deposit (CD)

Also called a time deposit this is a certificate issued by a bank or thrift that indicates a specified sum of money has been deposited. A CD has a maturity date and a specified interest rate, and can be issued in any denomination. The duration can be up to five years.

Certificate of Deposit

A deposit at a bank or other financial institution that has a fixed return (usually via an interest rate) and a set maturity. The depositor does not have access to the funds in a certificate of deposit until maturity; in exchange, he/she is usually entitled to a higher interest rate. CDs are insured by the FDIC up to a certain amount and as such are a way to increase return for no extra risk. See also: Demand deposit, Real estate certificate of deposit, Negotiable certificate of deposit.

certificate of deposit (CD)

A receipt, issued by a financial institution for a deposit of funds, that permits the holder to receive interest plus the deposit at maturity. Early withdrawal of CDs issued after October 1, 1983, results in a penalty of 30 days' loss of interest on maturities of one year or less, and loss of 90 days' interest on maturities over one year. See also add-on, callable CD, jumbo certificate of deposit, negotiable certificate of deposit, real estate certificate of deposit, term certificate, zero-coupon certificate of deposit.

Certificate of deposit (CD).

CDs are time deposits. When you purchase a CD from a bank, up to $100,000 is insured by the Federal Deposit Insurance Corporation (FDIC).

You generally earn compound interest at a fixed rate, which is determined by the current interest rate and the CD's term, which can range from a week to five years.

However, rates can vary significantly from bank to bank. You usually face a penalty if you withdraw funds before your CD matures, often equal to the interest that has accrued up to the time you make the withdrawal.

certificate of deposit

a FINANCIAL SECURITY issued by BANKS, BUILDING SOCIETIES and other financial institutions as a means of borrowing money for periods ranging from one month to five years. Once issued, certificates of deposit may be bought and sold on the MONEY MARKET and are redeemable on their maturity for their face value plus accrued interest.

certificate of deposit

a FINANCIAL SECURITY issued by BANKS, BUILDING SOCIETIES and other financial institutions as a means of borrowing money for periods ranging from one month to five years. Once issued, certificates of deposit may be bought and sold on the MONEY MARKET and are redeemable on their maturity for their face value plus accrued interest.

certificate of deposit (CD)

A receipt for money deposited in a financial institution.

References in periodicals archive ?
The Case of the Certificateless Certificate of Deposit
The bank then used these funds to purchase a certificate of deposit in the name of the applicant and noted this on the bank's books as CD # 50313123.
At the same time, Standard & Poor's affirmed its 'A-3' short-term counterparty credit and certificate of deposit ratings on the bank and revised its outlook to negative from stable.
Long-term certificate of deposits A- BBB+ American Savings Bank, FA
Short-term certificate of deposits A-2 Great Western Financial Corp.
In early November, The Bank of Mississippi statewide made an offer to pay customers a premium rate on a one-year certificate of deposit, plus make a contribution in their honor to The Salvation Army.
3 March 2011 - India's CARE today reaffirmed the PR1+ rating assigned to a certificate of deposits of South Indian Bank Ltd (BOM:532218).
CARE has also reaffirmed the existing 'PR1+' [PR One Plus] rating to the Certificate of Deposits programme of SIBL.
Interest rate risk is managed at the legal entity with swaps used to convert a significant amount of the longer term fixed rate certificate of deposits to floating rates.

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