certificate of deposit
Noun: A certificate of deposit is a type of savings product offered by banks and credit unions. It is a formal agreement where you deposit a specific sum of money for a fixed period of time. In return, the financial institution pays you interest. Typically, you cannot withdraw the money before the maturity date without paying a penalty.
A certificate of deposit is used as a low-risk investment or savings tool. It is often chosen by people who have a lump sum of money they do not need to access immediately and want to earn a higher interest rate than a regular savings account. - She put her savings into a certificate of deposit with a 12-month term. - The bank offered a competitive interest rate on its 5-year certificate of deposit.
- "to roll over a certificate of deposit": This means to reinvest the money from a maturing CD into a new one.
- When my certificate of deposit matured, I decided to roll it over into a new one with a longer term.
- CD (Noun): This is the common abbreviation for certificate of deposit.
- I'm comparing the APY on different CDs from local banks.
- Time deposit (Noun): A more general financial term that includes certificates of deposit.
- A certificate of deposit is one common form of a time deposit.
- Savings certificate: Another name for a certificate of deposit.
- Fixed-term deposit: Emphasizes the locked-in period of the agreement.
- CD ladder (Noun Phrase): An investment strategy involving multiple certificates of deposit with different maturity dates.
- He uses a CD ladder to manage liquidity and interest rate risk.
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a debt instrument issued by a bank; usually pays interest
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