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Certificate of Deposit - CD
Certificate of deposit - CD is a short or medium term, interest bearing savings certificate.
Certificate of deposit is issued by commercial banks with specified maturity date and fixed interest rate, which is lower than in the case of most comparable investments and is insured by the FDIC. Since the interest rates on CDs are lower then in similar investments, the risk involved is also lower.
Certificate of deposit is a time deposit that doesn't allow funds withdrawal. It actually does allow withdrawal on demand, but at high penalties.
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