Certificate of Deposit (CD)
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A Certificate of Deposit (CD) is a money deposit that can not be withdrawn for specific a time period.
- AKA: Time Deposit, Term Deposit, Bond, Fixed Deposit.
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- Example(s):
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- Counter-Example(s):
- See: Savings Certificate, Savings Account, Federal Deposit Insurance Corporation, Savings Deposit.
References
2017
- https://www.investopedia.com/terms/c/certificateofdeposit.asp
- QUOTE: ... A certificate of deposit (CD) is a savings certificate with a fixed maturity date, specified fixed interest rate and can be issued in any denomination aside from minimum investment requirements. A CD restricts access to the funds until the maturity date of the investment. CDs are generally issued by commercial banks and are insured by the FDIC up to 250,000 per individual. …
2016a
- (Wikipedia, 2016) ⇒ https://en.wikipedia.org/wiki/certificate_of_deposit Retrieved:2016-10-21.
- A certificate of deposit (CD) is a time deposit, a financial product commonly sold in the United States and elsewhere by banks, thrift institutions, and credit unions.
CDs are similar to savings accounts in that they are insured "money in the bank" and thus virtually risk free. In the USA, CDs are insured by the Federal Deposit Insurance Corporation (FDIC) for banks and by the National Credit Union Administration (NCUA) for credit unions. They differ from savings accounts in that the CD has a specific, fixed term (often one, three, or six months, or one to five years) and, usually, a fixed interest rate. The bank intends that the customer hold the CD until maturity, at which time they can withdraw the money and accrued interest.
- A certificate of deposit (CD) is a time deposit, a financial product commonly sold in the United States and elsewhere by banks, thrift institutions, and credit unions.
2016a
- (Wikipedia, 2016) ⇒ http://en.wikipedia.org/wiki/Time_deposit Retrieved 2016-10-23
- A time deposit (also known as a certificate of deposit in the United States, a term deposit, particularly in Canada, Australia and New Zealand; a bond in the United Kingdom; Fixed Deposits in India, Sri Lanka, Malaysia and in some other countries) is a money deposit at a banking institution that cannot be withdrawn for a specific term or period of time (unless a penalty is paid).[citation needed] When the term is over it can be withdrawn or it can be held for another term. Generally speaking, the longer the term the better the yield on the money. In its strict sense, certificate deposit is different from that of time deposit in terms of its negotiability: CDs are negotiable and can be rediscounted when the holder needs some liquidity, while time deposits must be kept until maturity.
- The opposite, sometimes known as a sight deposit or "on call" deposit, can be withdrawn at any time, without any notice or penalty: e.g., money deposited in a checking account in a bank.
2008
- (MA DoR, 2008) ⇒ Massachussets DoR. (2008). “Municipal Finance Glossary.” Massachussets Department of Revenue - Division of Local Services
- Certificate of Deposit (CD) – A bank deposit evidenced by a negotiable or non-negotiable instrument that provides on its face that the amount of such deposit, plus a specified interest, is payable to the bearer or to any specified person on a certain date specified in the instrument, at the expiration of a certain specified time, or upon notice in writing.