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they very well may be the safest possible investment but are certificates of deposits something you should be putting your money into [Music] hello and welcome to practical personal finance where you get the information you need to understand and succeed with money in the next few minutes im going to tell you about what a certificate of deposit is and how it works on a fundamental level then ill help you understand why banks offer certificates of deposit and why people purchase them and finally at the very end of this video ill give you my take on whether or not i believe certificates of deposit are a worthwhile investment the answer involves a fundamental principle of investing and it might surprise you lets start with the basics a certificate of deposit more commonly known as a cd is a place where you can park your money so it can earn some interest while youre not using it its a lot like a savings account but with two very important distinctions the term and the interest rate