BEIJING, June 6 -- China's central bank on Monday lowered the minimum amount of certificates of deposit (CDs) by individual investors from 300,000 (45,800 U.S. dollars) to 200,000 to give more people access to this investment channel.

A certificate of deposit is a time deposit that entitles the holder to receive interest at a higher rate than ordinary deposits, and thus is more appealing to savers.

The People's Bank of China allowed commercial banks to issue CDs in June 2015, with a minimum amount of 300,000 yuan for individuals and 10 million yuan for institutions.

The central bank said in a statement on Monday that lowering the threshold aims to promote the development of CDs, diversify personal investment channels and help banks attract deposits.

The adjustment became effective on Monday, the statement said.

Interest rates on the certificates are mainly determined by the market. CDs are tradable and can be used as mortgage for loans, according to rules unveiled by the central bank a year ago.