certificate of deposit
(CD)
Noun
1. A negotiable unsecured bearer money market instrument issued by a bank evidencing a time (term) deposit with that bank, usually at a fixed rate and with a maturity of seven days to several years and generally in book-entry form.
2. An interest-bearing time deposit usually paying a fixed-rate of interest evidenced by a negotiable or nonnegotiable instrument issued in bearer or registered form, stating the amount deposited, the interest to be paid and its maturity.
Synonym(s):
- [AE]: negotiable certificate of deposit (NCD).
Comment:
Outside the United States, the term is generally only used to refer to a negotiable certificate of deposit, as opposed to a nonnegotiable time deposit.
