certificate of deposit

noun phrase

: a money-market bond of a preset face value paying fixed interest and redeemable without penalty only on maturity

Examples of certificate of deposit in a Sentence

Recent Examples on the Web
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
Compared with the return provided by a certificate of deposit (CD), the highest interest rate available for a CD in October 2024 (when this article went to press) was 5.0%. Aaron Cirksena, Forbes, 17 Oct. 2024 Getty Images Holding cash — perhaps in a high-yield savings account, a certificate of deposit or a money market fund — is generally sensible for people building an emergency fund or for those saving for short-term needs like a down payment for a house. Greg Iacurci, CNBC, 16 Sep. 2024 While the interest in a high-yield savings account can go up or down based on the Federal Reserve’s benchmark rate, the interest on a certificate of deposit can be fixed for a set period of time, meaning no fluctuations in returns for the duration of the term. Sarah Min, CNBC, 19 July 2024 The annual percentage yield on a five-year certificate of deposit has jumped to 2.87%, up from 0.5% in March 2022, according to Haver. Darla Mercado, Cfp®, CNBC, 18 Sep. 2024 For instance, opening a high-yield savings account or a certificate of deposit (CD) only takes a bit of research up front, plus some time invested in opening the account. Becca Stanek, theweek, 29 Aug. 2024 If so, keep that amount in a high yield savings account, a money market account, or a short-term certificate of deposit. Jennifer Morris, The Mercury News, 8 July 2024 Bread Financial , once home of the 5.25% yield on a 1-year certificate of deposit, has dialed back its rate. Darla Mercado, Cfp®, CNBC, 26 July 2024 Now, on to something more business-y. For the kitchen-table investor with a little money to spare, now might be an ideal time to consider investing in a certificate of deposit. Daniel De Visé, USA TODAY, 26 June 2024

Word History

First Known Use

1846, in the meaning defined above

Time Traveler
The first known use of certificate of deposit was in 1846

Dictionary Entries Near certificate of deposit

Cite this Entry

“Certificate of deposit.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/certificate%20of%20deposit. Accessed 21 Nov. 2024.

Legal Definition

certificate of deposit

: a money-market bond of a preset face value (as $10,000) paying fixed interest and redeemable without penalty only on maturity (as after two years)

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