Financial instrument for short term loans, issued by commercial banks, indicating that a certain amount of money was deposited. It has dates of payment which may vary from weeks to years and can have any nominal value.
The interest rates are determined by the monetary market. It can be negociated or not. The major advantage consists in the fact that most banks allow recovering them before the payment date, without extra payments. In this case, the interest is calculated for the period between the date of buying the certificate and the date of selling it.
The total annual interest is the cost of the credit expressed in annual percentage of the total value of the credit.
