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 Certificate of Deposit offers a rate of return that is directly tied to the performance of the Nasdaq 100 Index(R) with an annual rate cap of 20 percent.
Heartland also announced that in January, 2000 it commenced operations of a certificate of deposit brokerage program, headed up by Vice President Bob Maher.
NEW YORK--(BUSINESS WIRE)--Standard & Poor's CreditWire 9/1/98-- Standard & Poor's today lowered its long-term counterparty credit and certificate of deposit ratings on Banco Sud Americano to triple-'B'-minus from triple-'B'.
Washington Mutual's bank subsidiaries' short-term counterparty and short-term certificate of deposit ratings, which were not placed on CreditWatch, have been affirmed.
NEW YORK--(BUSINESS WIRE)--S&P CreditWire 6/25/97--Standard & Poor's today has assigned its triple-'B'-plus long-term certificate of deposit and counterparty rating and its 'A-2' short-term certificate of deposit and counterparty rating to the Whitney National Bank in New Orleans, La.
This reduction in certificate of deposit balances is primarily responsible for a 1% decline in daily average outstanding balances of total deposits for the first nine months of 1996, to $295,690,000, compared to $297,316,000 for the same period in 1995.
Army of Mississippi added $25,000 to its Christmas Kettle Fund today due to the response of Mississippians to Bank of Mississippi's BellRinger certificate of deposit offer.

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