Certificate Of Deposit (CD) Legal Meaning and Definition

Here is a simplified definition of the legal term Certificate Of Deposit (CD).

Certificate Of Deposit (CD) (n.): A type of financial document issued by banks, including commercial and saving banks, to an individual who deposits a certain amount of money with the bank. The certificate includes the amount of money deposited, the interest rate the bank will pay, and the specific date when the deposit will mature. CDs are typically issued for a fixed term, during which the depositor can earn periodic interest.