What is a CD?
A Certificate of Deposit, commonly known as a CD, is a secure savings account offered by banks and credit unions. It is a low-risk, interest-bearing investment where you deposit a specific amount of money for a predetermined period, known as the "term". In return for locking in your funds for that term, the financial institution typically offers a higher interest rate compared to regular savings accounts. CDs are a safe and reliable way to grow your savings over time, making them a popular choice for individuals looking for a conservative investment option.