A Certificate of Deposit (CD) is a debt instrument issued by a bank that usually pays interest. Institutional CDs are issued in denominations of $100,000 or more, while individual CDs start as low as $100. Maturities range from a few weeks to several years. Interest rates are set by competitive forces in the marketplace.
A Tax Anticipation Bill (TAB) is a short-term debt obligation issued by the U.S. Treasury, primarily utilized by corporations to streamline their tax payments and manage liquidity.
