We often receive questions about certificates of deposit. Below please find answers to the most common questions we receive.
What does a CD stand for?
Certificate of Deposit
What is a CD?
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. Like savings accounts, CDs are considered low risk because they are FDIC-insured up to $250,000.
How do you use a CDs?
With a CD, you simply put a certain amount of money into a bank for a fixed amount of time. The bank then pays you interest on that money. At the end of the time period, when the CD reaches maturity, you receive your original deposit plus the earned interest.