What is a Certificate of Deposit (CD)?

Certificate of Deposit. Short- or medium-term, interest-bearing, FDIC-insured debt instrument offere…

Can’t see images? Click here.
Today’s issue is sponsored by OIC:

Free Options Podcasts, from The Options Industry Council.
Did you know Options can help protect your portfolio in a volatile market? Want to learn how? Our 7-part Podcast series will help you master the fundamentals of Options trading. Find out all about calls, puts, strike prices and more. Then learn to apply basic Options strategies using real market conditions.

Click Here to Download One Today!

tod-term-icon.jpg TERM OF THE DAY


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.

Learn more about this term
Usage Example
I chose to invest money in an certificate of deposit because I did not want to be tempted to withdraw funds at any given moment and it bears a maturity date of four years.
Share Facebook Twitter
tod-ny-resolution-w1.jpg Now that 2014 is here, it’s time to get started! The first step to achieving your personal finance goals is assessing your current financial health. Let’s make this your best year yet!
tod-group-icon.jpg MARKETPLACE
Options Industry Council
Download a free Options Fundamentals Podcast, from the Options Industry Council.
Click to View This Offer…
tod-article-icon.jpg FEATURED ARTICLE

List of Important Financial Ratios for Stock Analysis

When you’re research individual stocks for investing, you have to look beyond the basics like share price, number or shares, and market capitalization. Here are …

Read this article
tod-tip-icon.jpg TIP OF THE DAY

5 Common Ways to Protect Against Fraud

Here are basic precautions against identity theft, check fraud and other financial scams:
1. Be wary of requests to "update" or "confirm" personal information — especially your Social Security number…

Read this tip
Copyright 2013 WebFinance Inc. All Rights Reserved.

InvestorWords.com Term of the Day is published by WebFinance Inc., the operators of BusinessDictionary, InvestorGuide, and InvestorWords, and is sent only to those who have specifically requested it.


10201 Fairfax Boulevard, Suite 570 Fairfax, VA 22030

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s