Certificate Of DepositCD Financial Glossary

What is it? 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 certificates maturity. Money removed before maturity is subject to a penalty. CDs are low risk, low return investments.

Finance Term Definition Added By: Jason

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