New Delhi, May 6 -- A Certificate of Deposit (CD) is a financial instrument administered by the Reserve Bank of India, where interest is earned on an amount deposited for a specific time period. These short-term investment instruments are typically considered secure because the deposited amount is not subject to market volatility.

CDs are issued by scheduled commercial banks and financial institutions. However, cooperative banks and regional rural banks are not eligible to issue CDs.

The maturity tenure of a certificate of deposit issued by a commercial bank ranges from 7 days to 1 year, while for other financial institutions, the maturity period is from 1 year to 3 years. Depositors cannot withdraw the deposited amount before the due d...