Certificate Of Deposit (CD) Financial Glossary

What is it? A type of deposit account with a minimum initial deposit and fixed term (months until maturity).The current rate will dictate how interest is earned for the term. Usually, interest payments may be added back to the CD or payable by check or deposited to another checking or savings account at the depositors institution. Most CDs automatically renew at the end of a term at the current rate at the time of renewal.

Finance Term Definition Added By: Brady

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Other Similar Finance Terms:

Financial Term Finance Charge is The cost for using credit, comprised of interest costs and other fees.

Financial Term Effective Date is The date on which insurance under a policy will begin.

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