what is a certificate of deposit cd 
a certificate of deposit cd is a type of savings account that pays a fixed interest rate on money held for an agreed upon period of time cd rates are usually higher than savings accounts but you lose withdrawal flexibility if you withdraw your cd funds early you ll be charged a penalty cds come in a variety of terms from 3 6 or 12 months to 4 5 and even 10 year terms learn more about how cds work and about the advantages and disadvantages mira norian investopedia