BANKING AFFAIRS

Detailed explanation-1: -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.

Detailed explanation-2: -A certificate of deposit (CD) is a low-risk savings tool that can boost the amount you earn in interest while keeping your money invested in a relatively safe way. Like savings accounts, CDs are considered low risk because they are FDIC-insured up to $250, 000.

Detailed explanation-3: -CERTIFICATE OF DEPOSIT. A savings plan also known as a time deposit or savings certificate.

Detailed explanation-4: -CDs generally pay a fixed rate of interest and can offer a higher interest rate than other types of deposit accounts, depending on the market. These accounts typically provide security for longer-term savings and no monthly fees, but at the cost of access and liquidity of the funds.

Detailed explanation-5: -A certificate of deposit (CD) account is an alternative to a traditional savings account. A CD account typically requires a higher minimum balance than savings accounts, and your funds will usually remain on deposit for a fixed period of time (the “term” of the account).