What is PCD Full Form in Banking?

PCD Full Form in Banking is a Personal Certificate of Deposits. This is a savings product that is offered by credit unions and banks, where an individual will deposit a fixed amount of money for a specified period, earning interest over time. It is an assurance that the applicant possesses assets or deposits in a bank account. The bank delivers this certificate upon the applicant’s particular request to have proof of a savings account with deposits.

Features of PCD:

PCDs provide a fixed interest rate for the duration of the deposit, ensuring a predictable return on investment. The money is locked in for a set period, which might range from a few months to several years. Common terms include 6 months, a year, three years, and five years. PCDs are regarded as low-risk investments since they are normally covered by the FDIC in the United States or equivalent deposit insurance programs in other countries.

Benefits of PCD:

PCDs generally offer higher interest rates compared with regular savings accounts, as these funds are committed for a long period. Some PCDs will also automatically renew for another term upon maturity, and they have a minimum deposit required that varies from one bank to another. In general, they are ideal for individuals looking for safe and low-risk investments with higher returns.