What is an Interest Disbursement in a CD?

[acemcmac]

I took a corperate finance class in college that dealt with all manner of bonds and interest payments, compounding, etc.... but this is a term that I have never heard before. What's the difference between opting in and opting out?

This is with ING if it matters... it might be a company specific term

 

[dquan97]

I would say that it's interest paid to you at certain intervals (monthly or yearly). It's deposited to the checking account that funded your cd or an ING savings account.

Source:
https://home.ingdirect.com/faqs/faqs.asp?s=OrangeCD#disbursements
Can I receive interest disbursements from my Orange CD?
Yes. You can choose to receive interest disbursements on a monthly or yearly basis (on the anniversary date of the account opening). Interest disbursements can be sent to either an Orange Savings Account or a verified external account. The ability to select or deselect interest disbursement is only presented for 20 days from account opening. Once selected, you can change the account to which interest is disbursed at any time.

 

[FoBoT]

i think you can either have the interest from a CD accumulate (get rolled into your original pricipal) or you can get it paid out to you before the CD expires

an Interest Disbursement would be them paying you the interest from your CD