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Glossary Finance

Certificate of deposit (CD)

A certificate of deposit is a savings product that pays a fixed interest rate if you leave the money untouched for a set term.

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In more detail

Terms run from a few months to several years, and withdrawing early usually costs a penalty. Compare CDs by APY, which includes compounding.

Try these tools

CD Calculator

Calculate the final balance and total interest earned on a Certificate of Deposit (CD).

See also

  • Glossary APY
    APY (annual percentage yield) is the real yearly return on savings once compounding is included.
  • Glossary Compound interest
    Compound interest is interest calculated on the original amount plus all the interest already added, so growth builds on itself.
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