A certificate of deposit, CD, that is issued by a bank. It is a fixed income security (certificate) that represents a loan extended by a customer to the issuing bank (the lender). The bank remunerates the holder of the certificate with interest on the amount invested (face value or principal amount of the certificate).

Bank deposit certificates (CDBs) are issued in various denominations and maturities, allowing a bank to raise money from investors as per planned funding requirements in terms of amounts and terms.

To invest in CDB, an investor must have an account with an intermediary such as a brokerage house, an investment bank, etc., or even the issuing bank itself.