definitions

certificates of deposit

Bonds issued by banks and savings and loan associations to individual investors. CDs have terms ranging from a few months to several years; in general, the longer the term, the higher the interest rate that they bear. At the expiration of the term, investors may withdraw both the principal and the accrued interest. Penalties are imposed for early withdrawal.

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Nearby words

certificate of origin, certificate of registry, certificate of secondary education, certificate of stock, certificate of unruliness, certificates of deposit, certification, certification mark, certified, certified accountant, certified check
The New Dictionary of Cultural Literacy, Third Edition Copyright © 2005 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.