Certificates of Deposit
It is a fixed income financial tool that is governed by Reserve Bank of India and is issued in a dematerialized form. It is a type of agreement made between the depositors and the banks, wherein bank pays an interest on your investment for a tenure. Certificates of deposit are issued by the Scheduled Commercial Banks (SCBs) and All-India Financial Institutions. There is a term period of 1 month to 1 year for CDs that are issued by SCBs, whereas the term period ranges from 1 year to 3 years for CDs issued by financial institutions. CDs in dematerialized forms can be transferred through endorsement or delivery. There is no lock-in period for a CD. Major issuers: All Banks