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a CD or a certificate of deposit is a safe way of investing and growing your money with predictable earnings its a saving vehicle offered by Banks and Credit Unions that holds a fixed amount of money for a fixed period of time and in exchange the issuer pays you interest you deposit an amount called principal into the CD for a fixed duration known as the term and leave it there untouched for that duration you are offered a fixed interest rate for the length of your term CD terms typically range from 3 months to five years the CD matures when the term is docHubed at which you receive the principal plus the interest however youll incur a penalty if you withdraw your funds before the term is completed [Music] CDs are considered to be one of the safest savings options a CD bot through a federally insured bank is insured up to two hundred and fifty thousand dollars note that this insurance coverage is for all accounts in your name combined together at the same bank but not for each CD or
