Nope, we’re not talking about the shiny disks you used to use to play music. In the bank world, a CD (or Certificate of Deposit) is a special account where you select a length of time to loan us your money and we pay you back in interest.
- A CD is sometimes called a “time deposit.”
- The funds in the CD are kept for a specific period of time to earn a specific amount of interest.
- Generally, the longer the term of the certificate the higher the rate of interest earned.
A minimum deposit is required to open the account and a penalty applies for an early withdrawal (see disclosure for details).
You may be interested in our: Personal Savings Options
* Savings and money market accounts are subject to Federal Reserve Regulations D, which permits no more than 6 pre-authorized or automatic transfers per statement cycle