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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 interest. CDs offer higher interest rates than savings or money market accounts but require the investor to keep the money for the term or pay a fee. CDs come in different lengths, deposit amounts, and interest rates, with terms and fees also varying. Bank CDs are usually FDIC-insured up to a certain amount, providing a guarantee against loss.