Ans: Banks and other financial entities with authorization may issue certificates of deposit. CDs can be purchased by individuals, banks, corporations, trusts, mutual funds, etc. Depending on how much they plan to invest, a person can choose the type of CD they want to buy. The next step is to decide whether they want to collect interest payments monthly or yearly. Finally, the CD will be in the Demat account once a person has opened the Demat account.