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1. INVESTMENT PORTFOLIO & ANALYSIS
Topic: Certificate Of Deposit
Presenteed To:Dr.Ummara Seher
Presented By: Natasha Arshad
Student No.:S/2017-1616

2. CERTIFICATE OF DEPOSIT
CDS are short term financial
instruments issued by
commercial banks.
A way of earning interest on the
money you are saving by locking
it way for a certain period of
time, called Certificate of
deposit.

3. FEATURES
Amount you Interest rate How long the money
Deposited being paid must remain in
account

4. FEATURES (cont.)
CDS keep your money safe while earning interest.
However, if you try to take money out, there will be
penalties.

5. HOW CD WORKS?
Buy a CD at a certain price
Interest will compound (grow) annually
CD will earn money for just sitting there
At the end CD will mature
You’ll receive your
Priciple amount + Interest

6. EXAMPLE
If you purchase a
$10,000 CD
40% interest
1 year term
After a year, you’ll receive $10,4000
($10,000 + $4000)

7. PROS & CONS
Considered very safe
Fixed or variable interest rate
 Easy to open
Low liquidity
Low interest rate
Locked money
Inflation risk