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A certificate of deposit, or CD, is a safe investment option where an investor deposits money with a bank or broker for a set period, earning interest. CDs offer higher interest rates than savings accounts but require the money to be held for the term or face penalties. They come in different terms, deposit amounts, and interest rates, with some being FDIC-insured for up to a certain amount. Individual CDs vary, but most are issued by banks or brokerages.
