Certificate of Deposit

Archive for June, 2007

Question: HELP! Where do you classify a time deposit which matures within 3 months in the balance sheet?

A 120-day certificate of time deposit worth $5,000 dated September 17, 2009 and maturing January 15, 2010. Financial Statements are made on December 30, 2009

Answer: If this time deposit is not pledged as collateral, then you can include it in Cash and bank balances or Cash and cash equivalents, depending on your company’s classification. This would be under Current Assets.

Question: savings acct vs certificate deposit?

looking into opening a cd that has the current rate of 2.62%. my current savings acct rate is 3.25. On this situation why would someone open up a cd acct? is cd a better choice for the time being. please advise.

Answer: No, a CD is less liquid, meaning you cannot deposit and withdraw money at will. And you also get a lower interest rate.

There is 100% no reason to get a CD these days. The only reason it could be attractive is if the interest rate on it is higher.

Finance: Investing & Saving : What Is a Timed Certificate Of Deposit?

Davos Annual Meeting 2010 – Rethinking Systemic Financial Risk