Banking & Accounts

CD (Certificate of Deposit)

A savings product that holds money for a fixed term in exchange for a fixed interest rate.

CDs typically offer higher interest rates than standard savings accounts in exchange for committing not to withdraw funds until the term ends, ranging from a few months to several years. Withdrawing early usually triggers a penalty, often equal to some months of interest, which makes CDs best suited for money that isn't needed until a known future date.

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