ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A certificate of deposit (CD) is a savings tool that often pays higher interest rates when compared to a typical savings deposit account. A CD earns interest at a fixed rate over a set period of time known as the term. Withdrawing cash from a CD before it matures generally results in a penalty fee.

Detailed explanation-2: -: an official document in which a bank promises to pay a specified amount of interest when you deposit money in the bank for a specified period of time.

Detailed explanation-3: -What is a CD account? A Certificate of Deposit (also known as a CD, COD, or Time Account) is a financial product that usually pays a fixed interest rate for a set period of time, ranging from a few months to several years. This period of time is known as a “term.”

Detailed explanation-4: -Both certificates of deposit (CDs) and share certificates are low-risk deposit accounts where your money can grow at a fixed rate. The main distinction between them is that CDs are products offered by for-profit banks, while share certificates are offered by member-owned, not-for-profit credit unions.

Detailed explanation-5: -For kids of the 1990s, CD means compact disc, specifically that one Spin Doctors album you totally bought the day it came out. But in banking terms, CD means certificate of deposit.