Variable-Rate Certificate Of Deposit


DEFINITION of 'Variable-Rate Certificate Of Deposit'

A certificate of deposit (CD) with a variable interest rate. The rate can be determined by a number of mediums, such as the prime rate, consumer price index, treasury bills or a market index. The amount paid out is usually based on a percentage difference between the beginning index and the final index.

BREAKING DOWN 'Variable-Rate Certificate Of Deposit'

A certificate of deposit is generally considered to be one of the safer ways to invest your money. It is the perfect choice for the conservative investor, or to diversify the risk of your portfolio. When looking to step up the risk just a little bit, considering a variable rate CD may be a good place to start.

  1. Personal Finance

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  2. Fixed Interest Rate

    An interest rate on a liability, such as a loan or mortgage, ...
  3. Maturity Date

    The date on which the principal amount of a note, draft, acceptance ...
  4. Prime Rate

    The interest rate that commercial banks charge their most credit-worthy ...
  5. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. ...
  6. Variable Interest Rate

    An interest rate on a loan or security that fluctuates over time, ...
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