answersLogoWhite

0


Best Answer

When you put money in a savings account, you can draw it out at any time. In a certificate of deposit, you agree to leave it in the bank for a certain period of time. They pay slightly higher interest because they know that money will be there for 3 months, 6 months, 1 year, etc. If you draw it out early, they reduce your interest.

User Avatar

Wiki User

14y ago
This answer is:
User Avatar
More answers
User Avatar

Wiki User

12y ago

A certificate of deposit or CD is similar to a savings account and insured by the federal government. CDs are a time based deposit and as such generally have a higher interest rate than a standard savings account. You deposit the money and leave it in the bank untouched. In return you get the interest on the investment.

This answer is:
User Avatar

User Avatar

Wiki User

9y ago

A savings account is an account where one can transfer funds to and from the account on a regular basis, where as a Certificate of Deposit has to be held in the account until its maturity date.

This answer is:
User Avatar

User Avatar

Wiki User

9y ago

A certificate of deposit is a short term savings account that will tie up money for a few months or years and, in that time, attract interest. It is low risk and usually low yield but it is safe as the investment is guaranteed.

This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What is a certificate of deposit?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What is the plural of certificate of deposit?

Certificates of deposit.


Can Owner of deposit certificate sell it?

No. A Deposit Certificate cannot be sold. It can only be cashed by the person who took the deposit certificate so buying it would be a bad idea because if anyone else tries to cash the deposit certificate, the bank will not pay them.


How would you use a certificate of deposit?

well first you would start the start the deposit of your certificate. I would recomend waiting so your Certificate of deposit can mature with growth. Be sure to add the exact intrest rate of your certificate and be sure to use a calculator to determine your amount of the certificate deposit


What are the dimensions of a safe deposit box?

certificate of deposit


What is a bank CD?

A CD refers to a Certificate of Deposit. It is a certificate given to you by a bank for depositing cash with them. They would pay you an interest for having the deposit with them.


Is a certificate of deposit debited or credited?

Certificate of deposit is a current asset account and that's why it has a debit balance as a normal balance.


Where can someone get the certificate of deposit accounts?

A certificate of deposit is also commonly known as a time deposit which can be purchased in banks and credit unions that are located in the United States of America.


Are Certificate of deposit sheltered from creditors?

no


How do you replace a lost certificate of deposit?

To replace a lost certificate of deposit: locate any of your bank statements showing your account details, then contact the bank that issued you with the certificate of deposit, then provide documentation to prove your identity, then pay the requested fee and wait for your certificate to be reissued.


Is CD investment risky?

No. CD stands for Certificate of Deposit which is a certificate issued by a bank after they accept the deposit from you. No matter what happens, this money will be returned to you on the date of maturity/completion of this deposit.


Can my bank give me a new copy of my Certificate of Deposit?

If you have lost your Certificate of Deposit, all you have to do is go to your bank, make sure to take some Id with you, and they will be able to look up your bank details and issue you with a new Certificate of Deposit.


A certificate of deposit is best for?

A certificate of deposit is best for savings as they have a fixed interest rate. The drawback is that you should not cash it in until it reaches maturity.