certificates of deposit

Cultural  

1. 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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Example Sentences

The sector raised roughly $34 billion in 2021—its peak year—as investors chased dividends near 5% that far outstripped the meager yields available on bonds and certificates of deposit.

From The Wall Street Journal • Jan. 14, 2026

One obvious answer is certificates of deposit, which promise a fixed interest rate for a set term, such as one, three, or five years.

From Barron's • Dec. 11, 2025

High-yield savings accounts are more liquid than certificates of deposit, meaning you can take your money out more easily, with withdrawals usually limited to half a dozen per month.

From MarketWatch • Nov. 4, 2025

My goal now is not so much to grow the money substantially, but to avoid paying taxes on my investments, as I would have to do with certificates of deposit.

From Los Angeles Times • Dec. 29, 2024

I found, also, that the Bank of England never issues certificates of deposit, as do our banks in the United States.

From Reminiscences of Sixty Years in Public Affairs, Vol. 2 by Boutwell, George S.