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 investing, a 'deposit-certificate', commonly known as a certificate of deposit (CD), is a time-bound deposit offered by banks with a fixed interest rate. An investment advisor might say, 'Investing in a deposit-certificate can be a safe way to earn a higher interest rate on your savings, with the trade-off being less access to your funds for the term of the CD.'

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.

Finance

Scenario:

Can you recommend some safe investment options? I'm particularly averse to taking high risks.

Response:

A deposit-certificate is a safe investment tool. Your money stays locked for a specific period, and you can earn a fair amount of interest.