certificate of deposit

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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 ?
Table (3.1) summarizes the positive significant correlation between banks deposit rate and the real three month certificates of deposit rate, with a positive statistically significant result for F-test, and 0.814152 from the dependent variable are explained by the explanatory variables (R-Squared).
Broadly defined liquidity includes postal savings, deposits at farm and fishery cooperatives, loan and money trusts, investment trusts, bank debentures, Japanese and foreign government bonds, and M2 plus certificates of deposit.
The balance of certificates of deposit grew 43.0% to 22.6 trillion yen, lower than the 46.6% growth in December and showing a slower growth for the second month in a row.
According to CBUAE figures, the certificates of deposit dropped to Dh132.4 billion in January from Dh135.1 billion in December 2017.
The certificates of deposit issued by the central bank with the participation of authorized banks, are considered to be a key element to execute monetary policies, which aim to cut the cash liquidity surplus in the banking sector, and to stabilize the interest rates and money markets.
Broadly defined liquidity includes postal savings, deposits at farm and fishery cooperatives, loan and money trusts, bank debentures, and Japanese and foreign government bonds, as well as M2 plus certificates of deposit.
On May 25, 1993, Tax Executives Institute fled the following comments with the Canadian government, outlining a TEI proposal to establish tax certificates of deposit. The comments, which took the form of a letter from TEI President Bob Perlman to Minister of Finance Donald Mazankowski and Minister, Revenue Canada Otto Jelinek, urged the Canadian government to adopt a mechanism similar to that in place in the United Kingdom and issue Tax Certificates of Deposit analogous to those issued by Inland Revenue.
You can also get market-trend information and the latest quotes on stocks, bonds, mutual funds and, in some instances, bank moneymarket accounts and certificates of deposit.
The move resulted in reducing the value of CBUAE's certificates of deposit to AED 118.3 billion from AED 134.3 billion in March, according to official statistics.
The move resulted in reducing the value of CBUAE's certificates of deposit to Dh118.3 billion from Dh134.3 billion in March, reported Emirates news agency Wam, citing official statistics.
Muscat, July 6 (ONA) Certificates of deposit tender was held at the Central Bank of Oman (CBO) today.
Muscat : Certificates of deposit (CDs) tender was held at the Central Bank of Oman (CBO) this week.

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