UK Accounting Glossary
A CD, or Certificate of Deposit, is a savings instrument issued by a bank or thrift. The CD pays interest on deposits held for the term of the CD. The interest rate on a CD is usually quoted as an annual percentage yield, or APY and is determined by competitive market forces. CD yields tend to vary across institutions. Early withdrawal of funds deposited to a CD generally incurs a penalty. Typical periods for a CD are 1 to 6, 9, 12, 18, 24, 30, 36, 48, or 60 months. A CD is sometimes called a time deposit. A jumbo CD is a CD having a minimum denomination of $100,000. Individuals and institutions alike can use the CD as a low-risk way to earn interest income.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
Definitions for Certificate of Deposit are sourced/syndicated and enhanced from:
This glossary post was last updated: 4th February 2020.