Liquid Certificate Of Deposit

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.

BREAKING DOWN '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. Bear CD

    A certificate of deposit whose interest rate fluctuates in inverse ...
  2. Callable Certificate Of Deposit

    An FDIC insured certificate of deposit (CD) that contains a call ...
  3. Brokered Certificate Of Deposit

    A certificate of deposit (CD) that is purchased through a brokerage ...
  4. Variable-Rate Certificate Of Deposit

    A certificate of deposit (CD) with a variable interest rate. ...
  5. Promotional CD rate (Bonus CD rate)

    A limited-time offer of a higher rate of return on a certificate ...
  6. Bump-Up Certificate of Deposit ...

    A savings certificate entitling the bearer to take advantage ...
Related Articles
  1. Personal Finance

    Are CDs Good Protection For The Bear Market?

    Certificates of deposit promise stable income in any market, but do they deliver?
  2. Managing Wealth

    Save Smart With A CD Ladder

    A CD Ladder allows you to stagger your investments and take advantage of higher interest rates.
  3. Markets

    Certificates Of Deposit: Bells And Whistles (Part I)

    Beyond the basic model, there are CDs with many features. We'll explore some of the various options, beginning with add-on CDs and ending with zero-coupon CDs in the next section. Some of the ...
  4. Trading

    Callable CDs: Check The Fine Print

    These offer higher returns than regular certificates of deposit, but there's a catch.
  5. Personal Finance

    What Is A CD Ladder?

    Find out how a CD ladder can protect you from interest rate risk.
  6. Markets

    Getting Certificates of Deposit (CDs) in Emerging Markets: Risks and Rewards

    Learn about the risks and rewards associated with investing in a certificate of deposit (CD) offered by an emerging market and what to consider before buying.
  7. Personal Finance

    Certificate of Deposit (CD)

    A certificate of deposit, or CD, is a common financial product sold by banks, thrift organizations and credit unions. This type of product is often called a time deposit. CDs are insured up to ...
  8. Retirement

    Money Market: Certificate Of Deposit (CD)

    A certificate of deposit (CD) is a time deposit with a bank. CDs are generally issued by commercial banks but they can be bought through brokerages. They bear a specific maturity date (from three ...
  9. Markets

    Certificates Of Deposit: Safety And More!

    Most investors consider a CD to be a safe, conservative place to hold assets. The assets don't just sit there, though. They earn interest in return. Traditional CDs typically yield returns greater ...
  10. Personal Finance

    How To Create A Laddered CD Portfolio

    Laddered certificates of deposit offer safe capital and predictable cash flow, while bringing simplicity to your portfolio.
RELATED FAQS
  1. Can certificates of deposit (CDs) lose value?

    CDs are FDIC insured, so they do not lose face value, though broker-issued CD accounts do carry risks. Read Answer >>
  2. How safe an investment is a certificate of deposit?

    Discover certificates of deposit, their basic makeup and numerous variations, and understand why they are some of the safest ... Read Answer >>
  3. What's the difference between an individual retirement account (IRA) and a certificate ...

    Both individual retirement accounts (IRA) and certificates of deposit (CD) are useful savings instruments, but they have ... Read Answer >>
  4. What are my savings options?

    Hey, I'm looking to invest about 3 grand in some type of account so it matures over time and collects interest. I already ... Read Answer >>
  5. Do certificates of deposit help build credit?

    Learn about certificates of deposit, including if these securities are a useful tool to help build your credit score. Read Answer >>
  6. What is "hot money"?

    "Hot money" refers to funds that are controlled by investors who actively seek short-term returns. These investors scan the ... Read Answer >>
Hot Definitions
  1. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  2. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  3. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  4. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  5. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
  6. Russell 3000 Index

    A market capitalization weighted equity index maintained by the Russell Investment Group that seeks to be a benchmark of ...
Trading Center