Certificate of deposit (CD) is an agreement between the depositors and the authorized bank or financial institution. This agreement is for a specific period of time with a certain amount of money to invest where the financial institution pays interest. You can redeem at the time of maturity of the instrument.
#cds #certificateofdeposit #personalwindfall A certificate of deposit is essentially a savings account that holds a fixed amount of money for a fixed period of time. The time periods can range anywhere from 90 days to Five years. During that time period the bank pays interest. When you cash in or redeem your CD, you receive the money you originally invested plus the accrued interest. They can be a great tool.