Certificate of deposit | Practical Law

Certificate of deposit | Practical Law

Certificate of deposit

Certificate of deposit

Practical Law UK Glossary 6-107-5874 (Approx. 2 pages)

Glossary

Certificate of deposit.

A certificate issued by a bank to the depositor of funds. The certificate records the amount of money deposited, the term of the deposit and the fixed interest rate payable, and entitles the bearer to repayment on those terms. If the depositor needs money before the end of the fixed term, he can sell the certificate to a third party, usually a discount house.