Definition from Nolo’s Plain-English Law Dictionary
A document issued by a bank in return for a deposit of money. Interest rates on CDs are fixed, and usually higher than on savings accounts, because banking institutions require a commitment to leave the money on deposit for a fixed period of time. Often there is a financial penalty (fee) for cashing in a CD before the pledged time has run out.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:12 pm