Certificate of Deposit (CD)

byPaytm Editorial TeamLast Updated: November 14, 2025

Definition

A Certificate of Deposit is a short-term financial instrument issued by banks to raise funds for a fixed period at a fixed interest rate.

Features

It’s a negotiable and secure investment option usually offered to individuals or companies with surplus funds. CDs cannot be withdrawn before maturity without a penalty.

Example

A bank may offer a 6-month CD at 7% interest, providing guaranteed returns on investment.

You May Also Like

UPI Merchant Onboarding GuidelinesLast Updated: November 14, 2025

Meaning UPI Merchant Onboarding Guidelines are rules by NPCI that define how merchants should be verified, registered, and…

SIDBILast Updated: December 29, 2025

Meaning & Definition SIDBI (Small Industries Development Bank of India) provides financial support and development assistance to micro,…

Marine InsuranceLast Updated: November 14, 2025

Meaning Marine Insurance protects ships, cargo, and transporters from loss or damage during sea, air, or land transportation.…

UPI Transaction Limits APILast Updated: October 21, 2025

Definition UPI Transaction Limits API allows apps to verify the maximum and minimum transaction limits set by banks…

UPI Transaction ReversalLast Updated: October 21, 2025

Definition UPI Transaction Reversal is the process of returning money to the payer’s account for a failed or…