Article

Certificate of Deposit
June 07 , 2012

Certificate of Deposit or CD is a fixed term securities issued by scheduled banks and other lending institutions authorized by RBI. They are similar to fixed deposit in that maturity and interest rate are fixed at the beginning.

CDs usually have higher return than fixed deposits. The important distinction is that Certificates of Deposit can be freely traded with another person interested in buying them. They are sold at discount by the issuing bank or lender and redeemed at par on maturity. The rate of discount is determined by demand and supply forces in the market.

Maturity of Certificates of Deposit ranges from 7 days to 1 year. In case of non-bank issuers, CD maturity is between 1 and 3 years. Though individuals can buy CDs, they are not popular among them compared to institutional buyers like funds, trusts and corporations.

Fintotal Knowledge the best place to learn more on personal finance.

The language is simplified and written specially for non finance background individuals.


Explore more in a easy manner.

Table of Contents

Table of Contents

  • No Article Listed
  • No Article Listed
  • No Article Listed
  • No Article Listed
  • No Article Listed
  • No Article Listed
  • No Article Listed
  • No Article Listed
  • No Article Listed
  • No Article Listed

Get the all financial products under one roof only at

you will NEVER GO WRONG with us!

Unbiased . Best Deals . Appropriate Products . No Mis-selling