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.

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Universalium. 2010.

Look at other dictionaries:

  • 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 — n. 1. a time deposit paying a specified rate of interest for a specified period of time, with a penalty imposed for premature withdrawal of the deposited funds 2. a certificate acknowledging such a deposit …   English World 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 — 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 - 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 — 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 — Synonyms and related words: CD, IOU, MO, acceptance, acceptance bill, bank acceptance, bank check, bill, bill of draft, bill of exchange, blank check, callable securities, cats and dogs, certificate, certified check, charge card, charge plate,… …   Moby Thesaurus

  • certificate of deposit — noun a) A type of bank account representing a time deposit, which is insured, with a specific, fixed term, and, usually, a fixed interest rate. b) The certificate issued to the holder of such an account, verifying that he owns it …   Wiktionary

  • 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

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