24 - Banking -- Certificate of Deposit

A certificate of Deposit or CD is a time deposit, a financial product commonly offered to consumers by banks.
CDs are similar to saving accounts in that they are insured and thus virtually risk-free; they are "money in the bank". They are different from savings accounts in that the CD has a specific, fixed term (often three months, six months, or one to five years), and, usually, a fixed interest rate. Interest rate is usually higher than what is given to savings accounts. It is intended that the CD be held until maturity, at which time the money may be withdrawn together with the accrued interest.
When shall they be used?
http://en.wikipedia.org/wiki/Certificate_of_deposit

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Education

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• certificate
• of
• Deposit
• CD
• time
• deposit
• financial
• bank
• savings
• risk-free
• interest
• cash
• money
• management