Interbank certificates of deposit are book-entry time deposit certificates issued by deposit-based finance in the inter-bank market.

They are not bonds but a money market instrument.

The so-called deposit-taking financial institutions refer to commercial banks, policy banks and rural cooperative financial institutions.

Generally speaking, interbank CDs have terms ranging from one month to one year and accrue interest at a fixed or floating rate.

Simply put, interbank certificates of deposit are certificates of deposit between depository institutions, and investment can earn interest income.

Interbank certificates of deposit are mainly issued by joint-stock banks and city commercial banks, and the buyers are mostly state-owned banks and rural commercial banks.

These banks have many sources of deposits and the cost of obtaining funds is low.

Investing in interbank certificates of deposit can provide stable expected returns.

According to the ChinaBond Interbank Deposit Index, the expected return on interbank deposits in the past year is much higher than that of money funds.

According to third-party data, expected returns on interbank CDs vary, with maturities ranging from 3 to 6 months.