What is a Certificate of Deposit (CD)?
A Certificate of Deposit (CD) is a type of financial investment, were you deposit your money for a fixed period of time, in exchange of an interest.
CDs are extremely safe and simple investments. Almost risk free.
You are basically lending money to the bank for a fixed amount of time, after which, you get your capital plus an interest.
There are different types of certificate of deposit. Some give you a better rate if you deposit more money for example.
Money invested on CDs are covered by the FDIC deposit insurance ($250,000).