Desde Investopedia

TERM OF THE DAY

Certificate Of Deposit - CD A certificate of deposit (CD) is a savings certificate with a fixed maturity date, specified fixed interest rate and can be issued in any denomination aside from minimum investment requirements. A CD restricts access to the funds until the maturity date of the investment. CDs are generally issued by commercial banks and are insured by the FDIC up to $250,000 per individual.

Breaking it Down: A certificate of deposit is a promissory note issued by a bank. It is a time deposit that restricts holders from withdrawing... Read More