Add-On Certificate of Deposit
Definition of 'Add-On Certificate of Deposit'A certificate of deposit that allows the bearer to deposit additional funds, after the initial purchase date, that will bear the same rate of interest. |
|
Investopedia explains 'Add-On Certificate of Deposit'Add-on's or add-in's to a certificate of deposit are beneficial when investors feel interest rates will decline. By having this feature, the bearer of the CD will be guaranteed a minimum interest rate return.Most financial institutions that permit the use of an add-on feature will require these additional deposits to meet a minimum dollar amount (typically $500). |
Related Definitions
Articles Of Interest
-
Using The Price-To-Book Ratio To Evaluate Companies
The P/B ratio can be an easy way to determine a company's value, but it isn't magic! -
Retiring: Is $1 Million Enough?
Find out why this magic number has lost some of its lustre as a retirement savings target. -
Certificates Of Deposit
Safety is a hallmark of the traditional certificate of deposit (CD) sold by a bank or credit union. -
Why Your Pension Plan Has Sovereign Debt In It
One type of security pensions tend to invest in is sovereign debt, or debt issued by a government. -
Will Obama’s Chained CPI Help Keep Inflation From Eating Into Your Savings?
Learn the ways in which inflation nibbles away at your retirement income, especially in light of the President’s proposal for Chained CPI adjustments to Social Security. -
Enough Money To Not Worry
Our retirement goals have not changed. We still want enough money to not have to worry about it. How we go about getting there, however, has been changed dramatically. -
6 Popular ETF Types For Your Portfolio
Exchange traded funds are an extremely popular diversification tool that can protect your portfolio during troubled periods. -
Top 5 Budgeting Questions Answered
You don't need a degree to understand your money, begin saving and pay down debt. -
Asset Allocation: The First Step Toward Profit
Understanding the different asset classes is an essential part of portfolio diversification. -
Junk Bond
Find out more about these bonds that have a high risk of default.
Free Annual Reports