Certificate of Deposit


CD. Short- or medium-term, interest-bearing, FDIC-insured debt instrument offered by banks and savings and loans. CDs offer higher rates of return than most comparable investments, in exchange for tying up invested money for the duration of the certificate's maturity. Money removed before maturity is subject to a penalty. CDs are low risk, low return investments, and are also known as "time deposits", because the account holder has agreed to keep the money in the account for a specified amount of time, anywhere from three months to six years.

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You may want to invest in a certificate of deposit if you want to lower your risk and know everything is safe.

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The certificate of deposit generated a whole five percent profit in five months so we decided to continue the investment indefinitely.

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My grandmother did not trust the stock market and instead got a small interest payment from keeping her money tied up in a certificate of deposit with her local bank.

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Brokered CD certificates of automobile receivables (CAR)