certificate of deposit (CD)
Receipt from a bank acknowledging the deposit of a sum of money.

The most common type, the time certificate of deposit, is for a fixed-term interest-bearing deposit in a large denomination. It consequently pays higher interest than a savings account, though the investor who withdraws money before its maturity date is subject to a penalty. Introduced in the early 1960s, CDs have become a popular method of saving.

* * *


Universalium. 2010.

Look at other dictionaries:

  • Certificate Of Deposit - CD — A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate and can be issued in any denomination. CDs are generally issued by commercial banks and are insured by the FDIC. The term… …   Investment dictionary

  • 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 bears a maturity date and a specified interest rate, and can be issued in any denomination. The duration …   Financial and business terms

  • Zero-Coupon Certificate Of Deposit (CD) — A certificate of deposit (CD) that is purchased at a largely discounted rate. It differs from a traditional CD in that interest payments are not received yearly, but rather as a lump sum at the date of maturity. The advantage of a zero coupon CD… …   Investment dictionary

  • certificate of deposit — ( CD) A time deposit with a specific maturity evidenced by a certificate. Chicago Board of Trade glossary ( CD) A large time deposit with a bank, having a specific maturity date and yield stated on the certificate. CDs usually are issued with… …   Financial and business terms

  • certificate of deposit — certificate of deposit: a money market bond of a preset face value (as $10,000) paying fixed interest and redeemable without penalty only on maturity (as after two years) Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. certificate of… …   Law dictionary

  • Certificate of deposit — This article is specific to the United States. For a more general article, see Time deposit. Banking in the United States Monetary policy The Federal Reserve System Regulation Lending Credit card Deposit accounts Savings account Checking account …   Wikipedia

  • certificate of deposit — a written acknowledgment of a bank that it has received from the person named a specified sum of money as a deposit, often for a fixed term at a specified interest rate. Abbr.: CD, C.D. * * * ▪ finance       a receipt from a bank acknowledging… …   Universalium

  • certificate of deposit — noun a debt instrument issued by a bank; usually pays interest • Syn: ↑CD • Hypernyms: ↑debt instrument, ↑obligation, ↑certificate of indebtedness • Hyponyms: ↑time deposit * * * noun …   Useful english dictionary

  • certificate of deposit — /sə tɪfɪkət əv dɪ pɒzɪt/ noun a document from a bank showing that money has been deposited at a certain guaranteed interest rate for a certain period of time. Abbreviation CD ▪▪▪ ‘…interest rates on certificates of deposit may have little room to …   Dictionary of banking and finance

  • certificate of deposit — CD A negotiable certificate issued by a bank in return for a term deposit of up to five years. They originated in the USA in the 1960s. From 1968, a sterling CD was issued by UK banks. They were intended to enable the merchant banks to attract… …   Big dictionary of business and management

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”