Certificate of Deposit (CD)

A Certificate of Deposit (CD) is a savings product offered by banks and credit unions that pays a fixed interest rate in exchange for leaving your money deposited for a set period of time. CDs typically offer higher interest rates than regular savings accounts but require you to keep the money untouched until the term ends, which can range from a few months to several years. Withdrawing funds early usually results in a penalty. CDs are considered low-risk investments, making them a popular choice for those seeking a secure way to grow their savings over time.