what is a Certification of deposit?

Question

In simple english, please.

don't take answer from wikipedia i already read it.

yeah, i meant a Certificate of Deposit

Answer 1

You mean a Certificate of Deposit?

A bank CD is basically a timed savings account. You agree to give x amount of money to a bank for y amount of time. They give you a better than average interest rate. After the time is up, you have more money than before. If you withdraw money from the CD before the agreed time, you pay a penalty.

This benefits the person because the interest rate is greater than a typical savings account. This benefits the bank because they have an amount of money to invest for a known period of time.

Answer 2

(Assuming you meant "certificate of deposit") - You deposit a certain sum of money in the bank (usually a substantial amount, a few thousand at least) for a specific time (often one year, although terms from a few weeks to several years are available.) You agree to let the bank use that money for the entire term (that is, you agree not to withdraw it before the term is up.) In return, the bank pays you a higher interest rate on the money than you would get in a savings account that you could withdraw from at will.
Around here, C.D. interest rates are in the range of 5 to 5 1/2 percent at this time.

Answer 3

What's the context? Are you dealing with a bank account? If so it could simply mean a receipt from a deposit. (A deposit is made when you put money in your account).

Also, when you make a deposit, you can get a "certificate of deposit." This is basically an IOU written by the bank. It promises that you will get your money back, plus extra money from interest. (Interest is an additional percentage of money you collect when someone pays back a loan.)

Answer 4

reciept