Certificate of Deposit definition (2024)

Your Privacy

When you visit any website it may use cookies and web beacons to store or retrieve information on your browser. This information might be about you, your preferences or your device and is typically used to make the website work as expected. The information does not usually directly identify you, but can provide a personalized browsing experience. Because we respect your right to privacy, you can choose not to allow some types of cookies and web beacons. Please click on the different category headings to find out more and change our default settings. However, blocking some types of cookies may impact your experience on our website and limit the services we can offer.

Strictly Necessary Cookies

Strictly necessary cookies are necessary for the website to function and cannot be switched off in our systems. They are typically set in response to actions made by you which amount to a request for services, such as setting your privacy preferences, logging in or filling in forms. While you can set your browser to block or alert you about these cookies, some parts of the website will not work. These cookies do not store any personally identifiable information.

ALWAYS ACTIVE

Performance Cookies

Performance cookies and web beacons allow us to count visits and traffic sources so we can measure and improve website performance. They help us to know which pages are the most and least popular and see how visitors navigate around our website. All information these cookies and web beacons collect is aggregated and anonymous. If you do not allow these cookies and web beacons we will not know when you have visited our website and will not be able to monitor its performance.

Functional Cookies

Functional cookies enable our website to provide enhanced functionality and personalization. They may be set by us or by third party providers whose services we have added to our pages. If you do not allow these cookies then some or all of these services may not function properly.

Allow Functional Cookies:

Marketing Cookies and Web Beacons

Marketing Cookies and web beacons may be set through our website by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other websites. They do not directly store personal information, but uniquely identify your browser and internet device. If you do not allow these cookies and web beacons, you will experience less targeted advertising. Our website does not track users when they cross to third party websites, does not provide targeted advertising to them and therefore does not respond to "Do Not Track" signals.

Allow Marketing Cookies:

Interactive Brokers Group Cookie Policy

What are Cookies and Web Beacons?

Cookies are pieces of data that a website transfers to a user's hard drive for record-keeping purposes. Web beacons are transparent pixel images that are used in collecting information about website usage, e-mail response and tracking. Generally, cookies may contain information about your Internet Protocol ("IP") addresses, the region or general location where your computer or device is accessing the internet, browser type, operating system and other usage information about the website or your usage of our services, including a history of the pages you view.

How We Use Cookies and Web Beacons

Interactive Brokers Group collects information from cookies and web beacons and stores it in an internal database. This information is retained in accordance with our Privacy Policy. This website uses the following cookies and web beacons:

Strictly Necessary Cookies

These cookies are necessary for the website to function and cannot be switched off in our systems. They are usually only set in response to actions made by you which amount to a request for services, such as setting your privacy preferences, logging in or filling in forms. You can configure your browser to block or alert you about these cookies, but certain areas of the site will not function properly. These cookies do not store any personal data.

Performance Cookies and Web Beacons

These cookies and web beacons allow us to count visits and traffic sources so we can measure and improve the performance of our site. They help us to know which pages are the most and least popular and see how visitors move around the site. All information that these cookies and web beacons collect is aggregated and, therefore, anonymous. If you do not allow these cookies and web beacons our aggregated statistics will not have a record of your visit.The website uses Google Analytics, a web analytics service provided by Google, Inc. ("Google"). Google Analytics uses cookies to help analyse how you use this website. The information generated by the cookie about your use of this website (including your IP address) will be transmitted to and stored by Google on servers in the United States. Google will use this information for the purposes of evaluating your use of the website, compiling reports on website activity for website operators and providing other services relating to website activity and internet usage. Google may also transfer this information to third parties where required to do so by law, or where such third parties process the information on Google's behalf. Google will not associate your IP address with any other data held by Google.

Functional Cookies

These cookies enable the website to provide enhanced functionality and personalization. They may be set by us or by third party providers whose services we have added to our pages. If you do not allow these cookies, some or all of these services may not function properly.

Marketing Cookies and Web Beacons

These cookies and web beacons may be set throughout our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant advertisem*nts on other sites. They do not store personal information that could identify you directly, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies and web beacons, you will experience less targeted advertising. The website does not track users when they cross to third party websites, does not provide targeted advertising to them and therefore does not respond to Do Not Track ("DNT") signals.

Managing Your Cookie Preferences

You have many choices with regards to the management of cookies on your computer. All major browsers allow you to block or delete cookies from your system. However, if you do decide to disable cookies you may not be able to access some areas of our website or the website may function incorrectly. To learn more about your ability to manage cookies and web beacons and how to disable them, please consult the privacy features in your browser or visit www.allaboutcookies.org.This website may link through to third party websites which may also use cookies and web beacons over which we have no control. We recommend that you check the relevant third parties privacy policy for information about any cookies and web beacons that may be used.

Certificate of Deposit definition (2024)

FAQs

What is a simple definition of a certificate of deposit? ›

A certificate of deposit, or CD, is a type of savings account offered by banks and credit unions. You generally agree to keep your money in the CD without taking a withdrawal for a specified length of time. Withdrawing money early means paying a penalty fee to the bank.

What is the term of a certificate of deposit ______________? ›

A certificate of deposit (CD) is a savings account that holds a fixed amount of money for a fixed period of time, such as six months, one year, or five years, and in exchange, the issuing bank pays interest.

What is a certificate of deposit quizlet? ›

Certificate of Deposit (CD) A certifiicate issued by a bank to a person deoposititng money for a specified length of time. Higher Rate then Regular Savings. Invest. Expend money with the expectation of achieving a profit or material result by putting it into financial schemes.

How does a CD work for dummies? ›

A CD is a time deposit account, so you're making a commitment to keep your money in the CD for a set length of time. If you want to take money out of your CD before it matures, you'll pay an early withdrawal penalty. At many banks, the early withdrawal penalty is based on the amount of interest you earn in a day.

What is a simple example of certificate of deposit? ›

A certificate of deposit (CD) is defined as an investment instrument mostly issued by banks, requiring investors to lock in funds for a fixed term to earn premium rates. It is like a savings account. For example, Joe invested $5,000 in CD with a bank at a fixed interest rate of 5% with 5 years maturity.

What is the meaning of CDs? ›

Summary. A credit default swap (CDS) is a contract between two parties in which one party purchases protection from another party against losses from the default of a borrower for a defined period of time.

Can you lose money on a CD? ›

Standard CDs are insured by the Federal Deposit Insurance Corp. (FDIC) for up to $250,000, so they cannot lose money. However, some CDs that are not FDIC-insured may carry greater risk, and there may be risks that come from rising inflation or interest rates.

Which phrase best describes a certificate of deposit? ›

Answer: An account in which money must stay deposited for a certain amount of time.

What is a certificate of deposit best for? ›

CDs are best for individuals looking for a guaranteed rate of return that's typically higher than a savings account. In exchange for a higher rate, funds are tied up for a set period of time and early withdrawal penalties may apply.

What is another word for certificate of deposit? ›

On this page you'll find 7 synonyms, antonyms, and words related to certificate of deposit, such as: time deposit, cd, certificate, credit memorandum, credit slip, and deposit slip.

Which of the following is the best description of a certificate of deposit? ›

A certificate of deposit (CD) is a type of savings account that pays a fixed interest rate on money held for an agreed upon period of time. Offered by both banks and credit unions, CDs differ from standard savings accounts in that CD funds must remain untouched for the entirety of their term—or you'll incur a penalty.

What is one characteristic of a certificate of deposit? ›

A certificate of deposit (CD) offers a higher interest rate compared to a regular savings account. However, a CD would not allow the owner to withdraw money at anytime rather than its maturity. Or, the CD will need to be remained during its term.

What is a CD short answer? ›

A compact disc is a portable storage medium that can record, store and play back audio, video and other data in digital form.

What is a CD in simple terms? ›

What is a certificate of deposit? The definition of certificate of deposit is an account that allows you to save money typically at a fixed interest rate for a fixed amount of time—say, 6 months, 1 year or 5 years.

What is a certificate of deposit and how does it work? ›

With a CD, you agree to leave your money in the account for a set period of time, which can range from a few months to a number of years. In exchange, the bank or credit union that issues your CD will pay you a guaranteed return on the money, typically higher than you'd get on a regular savings account.

Why would you want a certificate of deposit? ›

One key benefit of a CD is that it's typically a safe way to increase your savings rate of return. If you're skittish about the stock market or tying up money in bonds, you might appreciate the security of a certificate of deposit. The FDIC insures CDs up to the maximum amount regulated by law.

What is a certificate of deposit and why are they so safe? ›

CDs are one of the safest savings or investment instruments available for two reasons. First, their rate is fixed and guaranteed, so there is no risk that your CD's return will be reduced or even fluctuate. What you signed up for is what you'll get—it's in your deposit agreement with the bank or credit union.

Are CDs good to invest in? ›

CDs are a relatively risk-free way to grow your funds, but they also have some downsides. Mapping out plans to build your savings can be challenging, especially when interest rates fluctuate. A certificate of deposit (CD) is a good alternative if you're risk-averse when it comes to investing.

How much does a $10,000 CD make in a year? ›

Earnings on a $10,000 CD Over Different Terms
Term LengthAverage APYInterest earned on $10,000 at maturity
1 year1.81%$181
2 years1.54%$310.37
3 years1.41%$428.99
4 years1.32%$538.55
1 more row
Apr 24, 2024

Top Articles
Latest Posts
Article information

Author: Francesca Jacobs Ret

Last Updated:

Views: 6337

Rating: 4.8 / 5 (68 voted)

Reviews: 91% of readers found this page helpful

Author information

Name: Francesca Jacobs Ret

Birthday: 1996-12-09

Address: Apt. 141 1406 Mitch Summit, New Teganshire, UT 82655-0699

Phone: +2296092334654

Job: Technology Architect

Hobby: Snowboarding, Scouting, Foreign language learning, Dowsing, Baton twirling, Sculpting, Cabaret

Introduction: My name is Francesca Jacobs Ret, I am a innocent, super, beautiful, charming, lucky, gentle, clever person who loves writing and wants to share my knowledge and understanding with you.