The National Directory of Certified Public Accountants

Ask A CPA - Investments & Financial Planning

What Is A Certificate Of Deposit ?

A Certificate of deposit is also known as a CD or a time deposit, This is a certificate issued by a bank or thrift that indicates a specified sum of money has been deposited. A Certificate of Deposit bears a maturity date and a specified interest rate, and can be issued in any denomination. The duration can be up to five years.

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