ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A fixed-rate certificate of deposit (CD) is a type of savings account that locks up your money with a set interest rate for a set term. Upon maturity of a CD, holders can either withdraw the entire amount or roll it over into another CD.

Detailed explanation-2: -A CD is a deposit account that pays a fixed interest rate over a set amount of time, or term. CDs pay more interest than the average savings account or money market account. And CDs are insured up to $250, 000 if taken out at a federally insured bank or credit union.

Detailed explanation-3: -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-4: -The options include traditional savings accounts, high-yield savings accounts, money market accounts, certificates of deposit, cash management accounts and specialty savings accounts.