Certificates of deposit (CD) are a type of deposit account, typically offered by banks and credit unions, that usually offer higher interest rates than your average savings account. That’s because CDs hold savers accountable to a certain term (usually anywhere between seven days and 10 years) during which time the account holder is unable to touch the funds. Most, though not all, accounts charge a penalty for withdrawing that money before the end of your CD’s term, also known as its maturity date.
