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Certificate of deposit

Index Certificate of deposit

A certificate of deposit (CD) is a time deposit, a financial product commonly sold in the United States and elsewhere by banks, thrift institutions, and credit unions. [1]

29 relations: Allen Stanford, Bank, Bank run, Bond market, Certificate of Deposit Account Registry Service, Certified check, Credit crunch, Credit union, Debt, Federal Deposit Insurance Corporation, Floating interest rate, Income tax, Individual retirement account, Interest, Interest rate, Interest rate risk, IRA Required Minimum Distributions, Maturity (finance), National Credit Union Administration, Online banking, Opportunity cost, Real interest rate, Reinvestment risk, Savings account, Savings and loan association, Stock market, Time deposit, Truth in Savings Act, Yield curve.

Allen Stanford

Robert Allen Stanford (born March 24, 1950) is an American former financier and sponsor of professional sports who is serving a 110-year federal prison sentence, having been convicted of charges that his investment company was a massive Ponzi scheme and fraud.

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Bank

A bank is a financial institution that accepts deposits from the public and creates credit.

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Bank run

A bank run (also known as a run on the bank) occurs when a large number of people withdraw their money from a bank, because they believe the bank may cease to function in the near future.

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Bond market

The bond market (also debt market or credit market) is a financial market where participants can issue new debt, known as the primary market, or buy and sell debt securities, known as the secondary market.

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Certificate of Deposit Account Registry Service

The Certificate of Deposit Account Registry Service (CDARS), is a US for-profit service that breaks up large deposits (from individuals, companies, nonprofits, public funds, etc.) and places them across a network of more than 3000 banks and savings associations around the United States.

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Certified check

A certified check or certified cheque is a form of cheque for which the bank verifies that sufficient funds exist in the account to cover the cheque, and so certifies, at the time the cheque is written.

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Credit crunch

A credit crunch (also known as a credit squeeze or credit crisis) is a sudden reduction in the general availability of loans (or credit) or a sudden tightening of the conditions required to obtain a loan from banks.

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Credit union

A credit union is a member-owned financial cooperative, controlled by its members and operated on the principle of people helping people, providing its members credit at competitive rates as well as other financial services.

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Debt

Debt is when something, usually money, is owed by one party, the borrower or debtor, to a second party, the lender or creditor.

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Federal Deposit Insurance Corporation

The Federal Deposit Insurance Corporation (FDIC) is a United States government corporation providing deposit insurance to depositors in U.S. commercial banks and savings institutions.

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Floating interest rate

A floating interest rate, also known as a variable or adjustable rate, refers to any type of debt instrument, such as a loan, bond, mortgage, or credit, that does not have a fixed rate of interest over the life of the instrument.

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Income tax

An income tax is a tax imposed on individuals or entities (taxpayers) that varies with respective income or profits (taxable income).

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Individual retirement account

An individual retirement account (IRA) is a form of "individual retirement plan", provided by many financial institutions, that provides tax advantages for retirement savings in the United States.

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Interest

Interest is payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum (i.e., the amount borrowed), at a particular rate.

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Interest rate

An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited or borrowed (called the principal sum).

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Interest rate risk

Interest rate risk is the risk that arises for bond owners from fluctuating interest rates.

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IRA Required Minimum Distributions

Required Minimum Distributions, often referred to as RMDs, are amounts that the US federal government requires one to withdraw annually from traditional IRAs and employer-sponsored retirement plans.

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Maturity (finance)

In finance, maturity or maturity date refers to the final payment date of a loan or other financial instrument, at which point the principal (and all remaining interest) is due to be paid.

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National Credit Union Administration

The National Credit Union Administration (NCUA) is the independent federal agency created by the United States Congress to regulate, charter, and supervise federal credit unions.

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Online banking

Online banking, also known as internet banking, it is an electronic payment system that enables customers of a bank or other financial institution to conduct a range of financial transactions through the financial institution's website.

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Opportunity cost

In microeconomic theory, the opportunity cost, also known as alternative cost, is the value (not a benefit) of the choice in terms of the best alternative while making a decision.

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Real interest rate

The real interest rate is the rate of interest an investor, saver or lender receives (or expects to receive) after allowing for inflation.

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Reinvestment risk

Reinvestment risk is one of the main genres of financial risk.

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Savings account

A savings account is a deposit account held at a retail bank that pays interest but cannot be used directly as money in the narrow sense of a medium of exchange (for example, by writing a cheque).

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Savings and loan association

A savings and loan association (S&L), or thrift institution, is a financial institution that specializes in accepting savings, deposits, and making mortgage and other loans.

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Stock market

A stock market, equity market or share market is the aggregation of buyers and sellers (a loose network of economic transactions, not a physical facility or discrete entity) of stocks (also called shares), which represent ownership claims on businesses; these may include securities listed on a public stock exchange as well as those only traded privately.

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Time deposit

A time deposit or term deposit (also known as a certificate of deposit in the United States) is a deposit with a specified period of maturity and earns interest.

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Truth in Savings Act

The Truth in Savings Act (TISA) is a United States federal law that was passed on December 19, 1991.

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Yield curve

In finance, the yield curve is a curve showing several yields or interest rates across different contract lengths (2 month, 2 year, 20 year, etc....) for a similar debt contract.

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CD (finance), CD ladder, Certificate of Deposit, Certificates of deposit, Certified Deposit.

References

[1] https://en.wikipedia.org/wiki/Certificate_of_deposit

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