Anytime Certificate of Deposit

Islamic Finance
Restricted Wakalah
September 4, 2021
Derivatives
Why Is the Futures Contract a Zero-Sum Game?
September 4, 2021

A certificate of deposit (CD) that allows the depositor (CD holder) to get his/ her money back anytime on a specific date. The depositee (the bank) will tailor-make the CD so that its maturity matches the depositor’s desired maturity.

The interest rate earned by the CD will be determined based on this flexibility of setting the CD’s maturity date.

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts