certificate of deposit

The certificate of deposit indicates that the investor has deposited a sum of money for specified period of time and at a specified rate of interest. CD rates, terms and dollar amounts will vary from institution to institution. CDs are not publicly traded securities. As such, you will not find them traded on any exchange. You can also purchase CDs through a stockbroker. Because brokers have access to CDs from many institutions across the country, investors have more choices in regard to terms and yield. Many brokers do not charge investors a fee for CDs. Instead, they usually receive a commission from the issuing bank. Since brokered CDs are still bank CDs, they are insured by the FDIC (Federal Deposit Insurance Corp). up to $250,000.