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.

What is a certificate of deposit (CD) at Bank of America?

Learn more about CDs at Bank of America. A certificate of deposit (CD) is a low-risk savings tool that can boost the amount you earn in interest while keeping your money invested in a relatively safe way. Learn more from Better Money Habits about how CDs work and how they can help you reach your savings goals.

What is a CD savings account?

A CD is a type of savings account with a fixed rate and fixed time period. CDs tend to have higher rates than regular savings accounts but don’t allow access to your money until a term ends. Consider a CD to have guaranteed returns without much risk and to have a safe place for savings earmarked for future use. CD definition: What is a CD?