A certificate of deposit or CD is a time deposit, a financial product commonly offered to consumers by banks, thrift institutions, and credit unions, CDs are similar to savings accounts in that they are insured and thus virtually risk-free.

They are different from savings accounts in that the CD has a specific, fixed term, and, usually, a fixed interest rate. It is intended that the CD be held until maturity, at which time the money may be withdrawn together with the accrued interest.

In exchange for keeping the money on deposit for the agreed upon term, institutions usually grant higher interest rates than they do on accounts from which money may be withdrawn on demand, although this may not be the case in an inverted yield curve situation. Fixed rates are common, but some institutions offer CDs with various forms of variable rates.

CDs are insured by the FDIC for banks or by the NCUA for credit unions