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certificate of deposit

A certificate of deposit, or CD, is a time deposit that will pay a specified amount of interest if the depositor leaves the money in the account for the term of the account. (noun)

When you deposit money and promise to leave it in the bank for six months in order to earn a higher interest rate, the paper you get representing the deposit is an example of a certificate of deposit.

See certificate of deposit in Webster's New World College Dictionary

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
a certificate acknowledging such a deposit

See certificate of deposit in American Heritage Dictionary 4

noun 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.

Learn more about certificate of deposit

» certificate of deposit investment & finance

» certificate of deposit legal definition

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