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A certificate of deposit (CD) is a safe investment where an investor deposits money with a bank or broker for a set period, earning higher interest rates than savings or money market accounts. Unlike savings accounts, CDs require money to stay in the account until the term ends, or a fee is paid for early withdrawal. CDs come in various lengths, deposit amounts, and interest rates, and can be FDIC-insured up to a certain amount when issued by a bank or brokerage.
