Glossary Terms

Business Certificate of Deposit

A business certificate of deposit (CD) is issued when a business chooses to deposit money in a commercial bank for a specified length of time in order to earn interest on the sum deposited.

A business certificate of deposit (CD) is issued when a business chooses to deposit money in a commercial bank for a specified length of time in order to earn interest on the sum deposited.

Business CDs are insured by the FDIC, so they are considered one of the safest forms of investment. They typically offer a fixed interest rate that can be collected upon when the CD reaches its maturity date. Terms usually range from one month to five years. Businesses will most likely incur a fee if they decide to withdraw on the CD early.