A Certificate of Deposit (CD) is a time deposit offered by banks, credit unions, and other financial institutions with a predetermined interest rate and maturity date.
A Negotiable Certificate of Deposit (NCD) is a time deposit with a bank that can be sold in the secondary market. These large-denomination CDs are typically issued in amounts over $100,000 and pay interest either to the bearer or to the order of the depositor.
The charge imposed by a bank or savings institution for withdrawing funds from a time deposit before its maturity. This penalty may be deductible by individuals as an adjustment to gross income.
A Time Deposit is a savings account or a Certificate of Deposit (CD) held in a financial institution for a fixed term or with the understanding that the depositor can withdraw only by giving notice. It offers a specified term and usually carries penalties for early withdrawal.
