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.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.

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.

Copyright © 1981-2005 by Gerald N. Hill and Kathleen T. Hill. All Right reserved.
References in periodicals archive ?
Moreover, the company stated that they continue to offer customers the three -year certificate of deposit as the bank increased the rates of the three-year certificate to be 10.25 percent per annum paid annually, 10.20 percent semi-annually, 10.15 percent quarterly, and 10 percent monthly.
Under existing UCC Article 9, if a certificate of deposit is an instrument, a security creditor can perfect a security interest only by possession.
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.
Sallie Mae, a US saving, planning and paying for college company a subsidiary of SLM Corporation (NYSE: SLM), has increased its 12-month certificate of deposit rate to 1.15 percent APY with an interest rate of 1.14 percent.
United Overseas Bank Limited (U11.SG) (OTC: UOVEY) has said that it has set up an HKD30bn certificate of deposit programme.
Online bank, CIT, has announced its Certificate of Deposit (CD) rate.

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