C

Callable CD  A certificate of deposit (CD) that can be redeemed by the issuer before the scheduled maturity.

Certificate of Deposit (CD)  A debt instrument, issued by a bank, offering interest payments at a determined interval for the use of the money. The required principal amount varies with each issuing bank; however, most Jumbo CDs are $50,000 to $250,000 per individual account.

Compound Interest  Interest earned on the principal amount invested, plus interest earned on the interest itself. For example, if the interest is earned monthly, but paid annually, the interest is calculated monthly. Therefore, an investment on $100,000 and paying 10% interest monthly, or $833 times 12 months is then added to the overall principal.

Coupon  Also referred to as the interest rate on a debt security. It is the rate at which the debtor will pay for the use of the money over the life of the security.