Certificate of Deposit is a type of deposit which is received for a certain period of time without movement and attracts higher interest rate than the prevailing saving interest rate.
The minimum period of accepting Certificate of Deposit shall be three months. The rates of interest vary according to the duration of the deposit received i.e. the longer the deposit remains in the bank the higher is the interest rate earned. However, the exact rate will be determined by the negotiation conducted between the customer and the bank.