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A certificate of deposit, or CD, is a safe, short-term investment that earns the investor interest over a set period. Unlike savings accounts, CDs require the investor to keep the funds deposited for the term or pay a fee for early withdrawal. CDs come in different lengths, deposits, and interest rates, and can be issued by banks or brokerages. Bank CDs are FDIC-insured up to a certain amount, guaranteeing against loss by the U.S. federal government.