ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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.

Detailed explanation-2: -A promotional CD, sometimes referred to as a bonus or special CD, is a certificate of deposit with a higher-than-normal annual percentage yield (APY). Banks and credit unions may offer a promotional CD to attract new customers. These promotions can be a good deal, but they may only be available for a limited time.

Detailed explanation-3: -A promotional certificate of deposit (CD) rate, also referred to as a bonus CD rate, is a higher-than-normal rate of return on a CD offered by banks and credit unions to attract new deposits.

Detailed explanation-4: -Fixed-Rate Certificates. Variable Certificates Of Deposit. Bump-Up Certificates. Liquid Certificates Of Deposit (No-Penalty CDs) The Next Steps. Compare CD Rates From 423 Banks And Credit Unions. Request A Quote.