A certificate of deposit (CD) is a type of savings account that pays a fixed interest rate on money held for an agreed upon period of time. CDs differ from standard savings accounts in that CD funds must remain untouched for the entirety of their term or you'll incur a penalty.

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, and in exchange, the issuing bank pays interest. When you cash in or redeem your CD, you receive the money you originally invested plus any interest.

A certificate of deposit is a type of savings account with a fixed interest rate and term. CDs, called share certificates at credit unions, tend to have the highest rates among federally insured bank accounts.

Certificates of deposit — more commonly known as CDs — are another savings vehicle offered by banks and credit unions allowing you to deposit your cash and earn interest over time. Unlike a traditional or high-yield savings account, however, once you open a CD, you can’t access those funds until the term ends, also known as the maturity date.

A certificate of deposit (CD) is a time deposit account in which your money accrues interest at a fixed yield for a set period of time, or term. CD terms typically range from as short as a few months to as long as five years, or even longer.