What is a certificate of deposit or CD?
Certificates of deposit (often called “CD’s”) are basically savings accounts set up for a defined period to earn interest, usually at a higher rate than a regular savings account. The time period may be from 6 months to several years. The longer period your account is set up for the higher the rate of return you’ll earn. You will only be able to access your money without penalty if you leave it in the account for the entire period. Generally these accounts are FDIC insured and available through your bank or credit union.
