Fixed-Rate Certificate of Deposit

DEFINITION of 'Fixed-Rate Certificate of Deposit'

A certificate of deposit (CD) which has a set interest rate to be paid throughout the entire lilfe of the investment. There are many types of fixed rate CDs, such as liquid CDs, brokered CDs, callable CDs and traditional CDs.

BREAKING DOWN 'Fixed-Rate Certificate of Deposit'

This a great investment for receiving the security of knowing exactly what you are going to get in the end. It is great for the conservative investor who still wants a bit of choice in how the investment is coordinated.

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  1. What is considered a good interest rate for a certificate of deposit (CD)?

    Explore the various options available with certificates of deposit and discover how to find the most lucrative rates for ... Read Answer >>
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    There is a fair amount of overlap between certificates of deposit (CDs) and bonds; they are both fixed-income securities, ... Read Answer >>
  3. What are the typical durations for a certificate of deposit?

    Investing in a certificate of deposit offers individuals the ability to earn interest on idle funds with less risk than stock ... Read Answer >>
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  5. What are the most popular assets for investors?

    Learn about the most popular asset classes in the United States for different types of investors. Explore the risks and benefits ... Read Answer >>
  6. How are yields taxed on a certificate of deposit (CD)?

    Learn how interest earned on a certificate of deposit is taxed and how this may reduce the total return of an investment ... Read Answer >>
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