ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A CD, or certificate of deposit, is a type of savings account with a fixed interest rate that’s usually higher than a regular savings account. It also has a fixed term length and a fixed date of withdrawal, known as the maturity date. You lock funds in a CD for a term generally ranging from three months to five years.

Detailed explanation-2: -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. When you cash in or redeem your CD, you receive the money you originally invested plus any interest.

Detailed explanation-3: -Maturity dates on CDs are tied to their terms. For example, a one-year CD matures in 12 months and a five-year CD matures in 60 months.

Detailed explanation-4: -At the end of this period, the CD will mature and your bank or credit union will release your money, along with the interest you’ve earned. At this point, you can take out the money, deposit it in another account, or roll it over into another CD.