Money Markets

Certificate of Deposit

Definition

What is Certificate of Deposit?

A time deposit or tradable bank instrument that pays interest over a stated term.

Example in practice

An investor places money in a six-month certificate of deposit.

Keep learning

A short-term government debt instrument usually issued at a discount and repaid at face value.

Short-term unsecured debt issued by a company.

A time draft guaranteed by a bank, commonly used to finance trade.

A portfolio of debt instruments with maturities spread across regular intervals.

Think you know your investing terms?

Put your knowledge to the test with a quick quiz.