Certificate of deposit

Certificate of deposit or CD is a time deposit, a financial product commonly obtainable to consumers by banks, thrift institutions, and credit unions.

Such CDs are comparable to savings accounts in that they are insured and thus virtually risk-free; they are "money in the bank" (CDs are insured by the FDIC for banks or by the NCUA for credit unions). They are different from savings accounts in that the CD has a specific, fixed term (often three months, six months, or one to five years), and, frequently, a fixed interest rate. It is planned that the CD be held until maturity, at which time the money may be withdrawn together with the accrued interest.