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 the difference between a demand deposit and a term deposit?

    Demand deposits and term deposits differ in terms of accessibility or liquidity, and in the amount of interest that can be ... Read Full Answer >>
  2. Other than my savings account, what other types of holdings compound my interest?

    Investors and savers can use the power of compounding interest to accumulate wealth over time. Unlike simple interest that ... Read Full Answer >>
  3. How often is interest compounded?

    Interest can be compounded on any given frequency schedule. Common interest compounding time frames are daily, monthly, semi-annually ... Read Full Answer >>
  4. What is a risk pyramid and why is it important?

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  5. What are some safe fixed-income investments?

    For the majority of younger investors, taking on risk within a portfolio in return for higher returns is the norm. Because ... Read Full Answer >>
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    Commercial banks make money by providing loans and earning interest income from those loans. Customer deposits, such as checking ... Read Full Answer >>

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