What is the maturity range for certificates of deposit typically issued by commercial banks?

The typical maturity range for certificates of deposit (CDs) issued by commercial banks is generally between 90 days to one year. This timeframe is popular among investors who are looking for a secure, low-risk investment with fixed returns. CDs offer a way to earn interest over a defined period, and the shorter maturity options are particularly attractive to individuals who may not want to lock in their funds for an extended time.

While CDs can be issued for longer maturities, such as one to five years or beyond, these lengths are less common for the standard offerings presented by banks. The 90 days to one year range balances liquidity and return, appealing to many savers who seek to safeguard their capital while benefiting from higher interest rates compared to traditional savings accounts.

Understanding the common maturity ranges can help stakeholders make informed decisions about where to allocate their financial resources based on their liquidity needs and risk tolerance.