Liquid Certificate Of Deposit

AAA

DEFINITION of 'Liquid Certificate Of Deposit'

A certificate of deposit (CD) that allows withdrawls to be made, without penalty, from the account. The major upside to this type of CD is that your money is accessible to you if you need it throughout the term. The downside is that the interest rate is generally lower than that of a traditional CD.

INVESTOPEDIA EXPLAINS 'Liquid Certificate Of Deposit'

In order to make a withdrawl from the CD, many institutions require notice of the withdrawl. Also, it is often necessary that a minimum balance be in the account. Finally, be sure to read all terms and conditions of the CD as there may be a limited amount of withdrawls that can be made during a period.

RELATED TERMS
  1. Checkable Deposits

    Any demand deposit account against which checks or drafts of ...
  2. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. ...
  3. Commercial Bank

    A financial institution that provides services, such as accepting ...
  4. Interest Rate

    The amount charged, expressed as a percentage of principal, by ...
  5. Maturity Date

    The date on which the principal amount of a note, draft, acceptance ...
  6. Callable Certificate Of Deposit

    An FDIC insured certificate of deposit (CD) that contains a call ...
Related Articles
  1. Bag The Best Bank Account
    Insurance

    Bag The Best Bank Account

  2. Certificates Of Deposit
    Bonds & Fixed Income

    Certificates Of Deposit

  3. Callable CDs: Check The Fine Print
    Investing Basics

    Callable CDs: Check The Fine Print

  4. The Pros And Cons Of Target-Date Funds
    Mutual Funds & ETFs

    The Pros And Cons Of Target-Date Funds

Hot Definitions
  1. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  4. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  5. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  6. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
Trading Center