noun a document issued by a bank or financial institution to a depositor as evidence of a deposit, usually with a fixed term and interest rate
Certificates of deposit contribute to the overall stability of the financial system by providing banks with a source of funding for lending activities.
A certificate of deposit is a financial product offered by banks that allows customers to earn a higher interest rate on their savings in exchange for agreeing to keep the money deposited for a fixed period of time.
Certificates of deposit can be used as a low-risk investment option for individuals looking to earn a guaranteed return on their money over a specific term.
Including certificates of deposit in a diversified investment portfolio can help individuals balance risk and return while ensuring the safety of a portion of their savings.
Certificates of deposit can be a conservative option for retirement savings, providing a fixed return over a set period of time without the volatility of other investment options.
A writer may invest in a certificate of deposit as a way to earn additional income while working on writing projects. This investment option allows them to earn a fixed interest rate over a set period of time, providing a more stable source of income.
A psychologist may recommend a certificate of deposit as a low-risk investment option for their clients who are looking to grow their savings. This can be especially useful for clients who are risk-averse or looking for a secure way to save money for future goals.
A financial advisor may suggest a certificate of deposit as part of a diversified investment portfolio for their clients. This can help clients balance riskier investments with more stable options, providing a guaranteed return on a portion of their savings.