| 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. Abbreviation: CD, C.D. |
| certificate of deposit n. pl. certificates of deposit Abbr. CD or C/D A certificate from a bank stating that the named party has a specified sum on deposit, usually for a given period of time at a fixed rate of interest. |
Certificate of Deposit - CD
A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified interest rate and can be issued in any denomination. CDs are generally issued by commercial banks.
Investopedia Commentary
Technically, a certificate of deposit is a promissory note on which the maker is a bank.
CDs under $100,000 are called "small CDs" CDs for more than $100,000 are called "large CDs" or "jumbo CDs". Almost all large CDs, as well as some small CDs, are negotiable.
Related Links
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See also: Bankers' Acceptance (BA), Brokered Deposit, Commercial Paper, GIC, Interest Rate, Jumbo CD, Maturity Date, Money Market, Negotiable Certificate Of Deposit, Promissory Note
Also spelled: CD