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Financial Terms / C - D / Certificate of deposit (CD)

Certificate of deposit (CD)

A certificate of deposit is a savings account in which you can deposit a fixed amount of money for a specified period (6 months, one year, five years) in exchange for interest on the lump sum you deposit. 

It is one of the safest forms of investment and is insured for up to $250k if your deposit is with a federally insured bank.

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