Certificate of Deposit
They are often issued by banks, and the length of the time deposit can vary greatly from a matter of literally days through to a period of many years. They have been a popular financial instrument over recent years, and count as a debt instrument.
Some types of certificates of deposit can be sold on in a secondary market before they mature, so they can be quite complicated. For those wishing to redeem them early there is usually some penalty such as only receiving a smaller amount of interest than there would have been at maturity and perhaps other penalties too.
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