certificate of deposit
A 'certificate of deposit' (CD) is a financial product that allows individuals to earn a fixed interest rate on a sum of money deposited for a specified term.
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Definition
B2Banking
(technical)A type of savings account with a fixed interest rate and maturity date, where funds cannot be withdrawn without penalty until the term ends.
Example
- She invested her savings in a certificate of deposit to earn a higher interest rate.
B2Finance
(technical)A financial product that provides a fixed rate of return over a specified period, typically insured by government agencies.
Example
- Certificates of deposit are a safe investment option for those looking to earn steady interest.