Difference between revisions of "Certificate of deposit"

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(New page: {{helpAddContent}} Certificates of deposit (or CDs) are debt instruments issued by banks and other financial institutions to investors. The investor is paid a set rate of [[i...)
 
 
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Certificates of deposit (or CDs) are [[debt instrument]]s issued by [[banks]] and other financial institutions to [[investors]]. The investor is paid a set rate of [[interest]] in exchange for [[lending]] the institution money for a predetermined length of time. [[Maturities]] on certificates of deposit range from a few weeks to several years; the interest rate earned by the investor increases in proportion to the time his or her [[capital]] is tied up in the [[investment]]. <ref>{{cite web|url=http://beginnersinvest.about.com/cs/banking/a/062501a.htm|name=In this Corner: Money Market vs. Certificate of Deposit|org=About.com|date=January 20, 2009}}</ref>


Certificates of deposit (or CDs) are [[debt instruments]] issued by [[banks]] and other financial institutions to [[investors]]. The investor is paid a set rate of [[interest]] in exchange for [[lending]] the institution money for a predetermined length of time. [[Maturities]] on certificates of deposit range from a few weeks to several years; the interest rate earned by the investor increases in proportion to the time his or her [[capital]] is tied up in the [[investment]]. <!-- Put a quick intro here about what it is you're discussing -->
Certificates of deposit are [[FDIC]]-insured for up to $100,000.  
 
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== References ==
== References ==

Latest revision as of 21:04, 29 July 2011


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Certificates of deposit (or CDs) are debt instruments issued by banks and other financial institutions to investors. The investor is paid a set rate of interest in exchange for lending the institution money for a predetermined length of time. Maturities on certificates of deposit range from a few weeks to several years; the interest rate earned by the investor increases in proportion to the time his or her capital is tied up in the investment. [1]

Certificates of deposit are FDIC-insured for up to $100,000.

References[edit]