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.
* * *▪ financea receipt from a bank acknowledging the deposit of a sum of money. Among the common types are demand certificates of deposit and time certificates of deposit. Demand certificates of deposit are payable on demand but do not draw interest; they are used primarily by contractors as evidence of good faith when submitting a bid or as a guaranty of performance, and they may also be used as collateral to secure a loan. Time certificates of deposit bear interest and are payable on or after a specific date. Interest on time deposits is higher than for regular savings accounts. Because of this, a depositor who withdraws money deposited on a time basis before the maturity date of the certificate is subject to loss of interest.In the United States, treasury-rate certificates of deposit pay interest according to the discount rate for treasury bills (treasury bill) at the time that the certificate of deposit was purchased, and the interest rate is guaranteed for the life of the certificate. Sterling certificates of deposit are subject to the controls of the Bank of England (England, Bank of).
* * *
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 - 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) — 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… … 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 — 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