Certificate of Deposit
A certificate of deposit (CD) is a savings account that holds a fixed amount of money for a fixed period of time, such as six months, one year, or five years. In exchange, the issuing bank or credit union pays you interest. When you cash in or redeemyour CD, you receive the money you originally invested plus any interest.
Concept at a glance
Definition and explanation
A certificate of deposit (CD) is a savings account that holds a fixed amount of money for a fixed period of time, such as six months, one year, or five years. In exchange, the issuing bank or credit union pays you interest. When you cash in or redeemyour CD, you receive the money you originally invested plus any interest. [1]
Certificates of deposit are considered to be one of the safest savings options. A CD bought through a federally insured bank or credit union is insured up to $250,000. [1]
Source-supported connections
Frequently asked questions
What does Certificate of Deposit mean in the cited reference?
A certificate of deposit (CD) is a savings account that holds a fixed amount of money for a fixed period of time, such as six months, one year, or five years. In exchange, the issuing bank or credit union pays you interest. When you cash in or redeemyour CD, you receive the money you originally invested plus any interest. [1]
Certificate of Deposit connection map
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Sources and review dates
Reviewed 23 October 2026. Historical dates and award-time affiliations retain their original context. A review date is not an event date. Background sources are identified separately from official records.