13 / November / 2017 07:13

Bank Mellat to Issue $450m of Certificates of Deposit

EghtesadOnline: Bank Mellat plans to issue 18 trillion rials ($450 million) worth of certificates of deposit in the next five trading days. The CDs’ sale will begin on Monday and continue until Nov. 20, Bourse Press reported.

News ID: 780399

They will have a 16% interest rate paid on a monthly basis and a 14% annual yield on repurchase before they mature in a year.

A certificate of deposit is a savings certificate with a fixed maturity date and specified interest rate, which can be issued in any denomination.

A CD, generally issued by commercial banks, restricts access to the funds until the maturity date of the investment, according to Financial Tribune.

 

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