certificate of deposit


certificate of deposit
= CD
A negotiable certificate issued by a bank in return for a term deposit of up to five years. They originated in the USA in the 1960s. From 1968, a sterling CD was issued by UK banks. They were intended to enable the merchant banks to attract funds away from the clearing banks with the offer of competitive interest rates. However, in 1971 the clearing banks also began to issue CDs as their negotiability and higher average yield had made them increasingly popular with the larger investors. A secondary market in CDs has developed, made up of the discount houses and the banks in the interbank market. They are issued in various amounts between £10, 000 and £50, 000, although they may be subdivided into units of the lower figure to facilitate negotiation of part holdings. See also roll-over CD

Big dictionary of business and management. 2014.

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  • 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 — 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. * * * ▪ finance       a receipt from a bank acknowledging… …   Universalium

  • 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