{"id":341987,"date":"2025-07-04T18:44:30","date_gmt":"2025-07-04T13:14:30","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=341987"},"modified":"2025-07-04T18:44:30","modified_gmt":"2025-07-04T13:14:30","slug":"certificate-of-deposit-cd","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/certificate-of-deposit-cd\/","title":{"rendered":"Certificate of Deposit (CD)\u00a0\u00a0\u00a0\u00a0\u00a0"},"content":{"rendered":"<p><strong>News:<\/strong> News: PSU Banks&#8217; share in certificates of deposits issuance rises to 69% from 6% in three years, leading to their market share zooming from single digit to nearly 70% in three years.<\/p>\n<h2>About Certificate of Deposit (CD)<\/h2>\n<ul>\n<li>A Certificate of Deposit (CD) is a <strong>negotiable<\/strong>, <strong>unsecured money market instrument<\/strong> issued by scheduled commercial banks and select All-India Financial Institutions (FIs) that offers <strong>a fixed interest rate<\/strong> on a <strong>lump-sum deposit for a predetermined period<\/strong>.<\/li>\n<li><strong>Key Features:<\/strong>\n<ul>\n<li><strong>Issuer:<\/strong> Scheduled commercial banks and specified financial institutions (excluding Regional Rural Banks and Local Area Banks).<\/li>\n<li><strong>Eligible investors:<\/strong> <strong>Individuals<\/strong> (including NRIs on a non-repatriable basis), corporations, companies, trusts, funds, associations, etc.<\/li>\n<li><strong>Minimum amount:<\/strong> <strong> 1 lakh from a single subscriber<\/strong> and in <strong>multiples<\/strong> of Rs. 1 lakh thereafter.<\/li>\n<li><strong>Tenure:<\/strong> Ranges from <strong>7 days to 1 year for banks<\/strong>; for financial institutions, <strong>from 1 to 3 years.<\/strong><\/li>\n<li><strong>Interest &amp; returns:<\/strong> Issued at a <strong>discount to face value<\/strong>; returns equal the difference between issue price and face value. Interest is fixed and guaranteed.<\/li>\n<li><strong>Negotiability:<\/strong> CDs are freely transferable and can be traded in the secondary market before maturity.<\/li>\n<li><strong>No lock-in period:<\/strong> Investors can sell CDs before maturity, subject to market conditions.<\/li>\n<li><strong>Taxation:<\/strong> Interest income on CDs is fully taxable under the <strong>Income Tax Act<\/strong>.<\/li>\n<li><strong>Regulation:<\/strong> Governed by the Reserve Bank of India (RBI).<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>News: News: PSU Banks&#8217; share in certificates of deposits issuance rises to 69% from 6% in three years, leading to their market share zooming from single digit to nearly 70% in three years. About Certificate of Deposit (CD) A Certificate of Deposit (CD) is a negotiable, unsecured money market instrument issued by scheduled commercial banks&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/certificate-of-deposit-cd\/\">Continue reading <span class=\"screen-reader-text\">Certificate of Deposit (CD)\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><\/a><\/p>\n","protected":false},"author":10393,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,12039],"tags":[11872],"class_list":["post-341987","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-knolls","tag-9pm-daily-factly","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/341987","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10393"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=341987"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/341987\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=341987"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=341987"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=341987"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}