certificate-deposit

Vocabulary Word

Definition

A 'certificate of deposit' (CD) is a type of time-based savings agreement with a bank. The bank pays a higher interest rate than regular savings accounts, but you must keep the money in the bank for a set time.

Examples in Different Contexts

In banking, a 'certificate of deposit' (CD) is a savings certificate with a fixed maturity date and specified fixed interest rate. A bank manager might advise, 'Certificates of deposit are a low-risk investment option for customers looking to earn higher interest than a regular savings account.'

Practice Scenarios

Tech

Scenario:

Our clients want a secure platform to complete their certificate transactions. I think including an encryption feature for online CDs might be a good start.

Response:

Right, enhancing the security of digital certificate of deposit transactions can increase the trust of our clients.

Academics

Scenario:

Investment portfolios can be diverse. We should look at including some low-risk assets with guaranteed returns in our discussion.

Response:

Certainly, a certificate of deposit is a great example of a low-risk asset that provides a steady return.