deposit-certificate

Vocabulary Word

Definition

A 'deposit-certificate' is a type of savings account that holds a certain amount of money for a fixed period of time. When that time is over, you get back your money plus additional money called interest.

Examples in Different Contexts

In savings strategies, 'deposit-certificate' offers a low-risk investment option for saving money over a fixed period. A financial planner might explain, 'A deposit-certificate is ideal for part of your savings portfolio, providing a guaranteed return with very low risk compared to stocks or bonds.'

Practice Scenarios

Banking

Scenario:

I'm looking for a secure and higher interest-yielding place to put my savings. Any suggestions?

Response:

A deposit-certificate might be a good option for you. It provides a higher interest rate and is secure.

Business

Scenario:

We have a significant amount of idle cash in our company's account. How can we effectively use this?

Response:

Investing some of that cash in a deposit-certificate could offer a better interest rate than our current savings account.