A certificate of deposit is a time deposit offered by banks that pays interest over a specified period of time, ranging from 1 month to 5 years. It is issued to individuals, corporations, and other entities for a minimum of 100,000 rupees and up in multiples of 100,000 rupees. A certificate of deposit has a defined maturity date, interest rate, and denomination. However, it cannot be extended at maturity and funds can only be withdrawn via crossed cheque.

1. PREARED BY
T HARI KUMAR
NAVEEN

2. CERTIFICATE OF DEPOSIT
MEANING It is a time deposit or financial product
commonly offered to consumers by the banks.
More specifications about Certificate of
Deposit. Are as follows …
ISSUE PERIOD Form 1 month to 5 years
ISSUED BY Scheduled commercial banks, ( excluding
RRB’s& LAB’s)
ISSUED TO Individuals, corporations, companies, trusts,
funds, associations etc.
AMOUNT RANGE Minimum amount of 1lakh Rupees & above *
(multiples of 1 lakh)

3.  A MATURITY DATE
 A SPECIFIED INTEREST RATE
 IT CAN BE ISSUED IN ANY DENOMINATIONS

4. ITS DISADVANTAGES ARE…
• HOLDERS EVEN BUY-BACK YOUR CD.
• NO EXTENSION IN MATURITY PERIOD.
• PAYMENT IS RESTRICTED TO ONLY CROSSED
CHEQUES.
• THE INVESTMENT IS LOCKED IN AT A SPECIFIC
RATE, EVEN IF INTEREST RATES INCREASE.