Why Save Money? | What Is A Savings Account? | What Is A CD?
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What Is A CD?

Certificate of Deposit (CD): A CD at a bank isn't the musical kind of CD! CD stands for Certificate of Deposit. A bank CD is a type of savings account where you agree to keep your money in the CD for a set amount of time (called the TERM of the CD). If you close your CD before the term is up, you may lose some of your interest. Banks have many different terms for their CDs. The term can be for as short as 6 months or as long as 60 months (5 years). The interest rate for a CD is usually higher than on a regular savings account.