A certificate of deposit template is a financial document issued by a bank to a person that indicates the investor has deposited a sum of money for a specified period of time and at a specified rate of interest. Basically, it is a saving certificate with a fixed due date, fixed interest rate and can be issued in any denomination apart from minimum investment conditions. It restricts access to the funds until the fixed due date of the investment. Normally, these certificates are issued by commercial banks and are insured by the federal deposit insurance corporation.
Importance of Certificate of Deposit:
A deposit certificate template is usually like a promissory note that restricts the holders from withdrawing payments on demand. This certificate is normally issued electronically or might be automatically renewed upon the maturity of the original certificate of deposit. When the certificate of deposit time period is completed, then it is said to be mature. Briefly for this, the organization will notify the customer and give a proposal to either withdraw the money with interest earned or reinvest the money for a further specified period of time. Generally, these deposit certificates have slightly higher rates than saving and checking accounts because the customers commit to not withdrawing their money and operate under the premise that a person forfeits liquidity for a higher return.
Templates for Certificate of Deposit:
