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A certificate of deposit, or CD, is a deposit made by an investor to a bank or broker, earning interest over a set period. CDs are a safe, short-term investment with higher interest rates compared to savings or money market accounts. The main difference is that CD funds must be kept for the set term or face a penalty. CDs come in different lengths, amounts, and rates, and can be issued by banks or brokerages. Bank CDs are typically FDIC-insured up to a certain amount, providing protection against loss.