Certificate of Deposit

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Related to Certificate of Deposit: negotiable certificate of deposit

Certificate of Deposit

A written recognition by a bank of a deposit, coupled with a pledge to pay the deposited amount plus interest, if any, to the depositor or to his or her order, or to another individual or to his or her order.

A form of Commercial Paper that serves as documentary evidence that a savings account exists.

certificate of deposit (CD)

n. a document issued by a bank in return for a deposit of money which pays a fixed interest rate for a specified period (from a month to several years). Interest rates on CD's are usually higher than savings accounts because banking institutions require a commitment to leave money in the CD for a fixed period of time. Often there is a financial penalty (fee) for cashing in a CD before the pledged time runs out.

See: receipt
References in periodicals archive ?
According to Fawzi, the five-year certificate of deposit is an expansion of Mashreq's product line, where the customer can have the flexibility to choose from a wide range of certificates whether for tenor of 3 or 5 years based on customer choice.
Our most recent report on how families save for college found that 16 percent of families use a certificate of deposit to save for college.
For the foregoing reasons, Tax Executives Institute recommends that Finance and Revenue Canada give favourable consideration to the introduction of a Tax Certificate of Deposit mechanism.
Service 1st Bank can now provide its customers FDIC insurance coverage for Certificates of Deposit up to a total of Fifteen Million Dollars ($15,000,000) using the Certificate of Deposit Account Registry Service (a.
This is the first certificate of deposit issued by the bank to retail investors, a spokeswoman said.
It is designed so that they can recover some of the lost principal and interest that would have been generated had the money been invested in a certificate of deposit.
21 /PRNewswire/ -- Glendale Federal Bank has introduced a new three-year certificate of deposit which features a variable interest rate linked to changes in the S&P 500 stock index.

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