CD

Definition

Certificate of Deposit. Short- or medium-term, interest-bearing, FDIC-insured debt instrument offered by banks and savings and loans. CDs offer higher rates of return than most comparable investments, in exchange for tying up invested money for the duration of the certificate's maturity. Money removed before maturity is subject to a penalty. CDs are low risk, low return investments, and are also known as "time deposits", because the account holder has agreed to keep the money in the account for a specified amount of time, anywhere from three months to six years.

Use CD in a sentence

You may want to invest in a CD that will not have a huge return but should be a very steady and safe investment.

​ Was this Helpful? YES  NO 25 out of 25 people found this helpful.

If you don't have immediate plans for your bonus money, you might consider opening a CD so that you can earn a higher interest rate than you would using your savings account.

​ Was this Helpful? YES  NO 25 out of 25 people found this helpful.

When my mother died we took a look at her assets in the bank and learned that she had put most of her money in long-term CD contracts that paid her more interest than a savings account but kept her money locked up for years.

​ Was this Helpful? YES  NO 25 out of 25 people found this helpful.

Show more usage examples...

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
customer information file (CIF) callable CD