CD

A Certificate of Deposit (CD) is a savings account offered by banks with a fixed interest rate and a set term, usually ranging from a few months to several years. When you purchase a CD, you agree to keep your money deposited for that period, and in return, the bank pays you interest, often at a higher rate than regular savings accounts. You cannot withdraw the funds before the term ends without penalties. CDs are considered a low-risk investment, suitable for earning stable interest while safeguarding your principal.