Certificate of Deposits

A Certificate of Deposit (CD) is a savings product offered by banks and credit unions where you deposit a fixed amount of money for a set period, usually ranging from a few months to several years. In return, the bank pays you a higher interest rate than a regular savings account due to the fact that you agree not to withdraw the money for the term. At maturity, you receive your initial deposit plus the earned interest. While CDs are generally considered safe investments, early withdrawals may incur penalties.