A certificate of deposit, commonly referred to as a CD, is a type of long term savings account available to depositors at banks and other financial institutions. In exchange for depositing funds for a specified length of time, the depositor will receive interest rates that are typically higher than standard savings account rates. Certificates of deposit are commonly available in 3 month, 6 month, 9 month, 1 year, and multiple year lengths of time. Quite often, the longer the deposit term, the higher the interest rate you will receive.

A certificate of deposit, commonly referred to as a CD, is a type of long term savings account available to depositors at banks and other financial institutions. In exchange for depositing funds for a specified length of time, the depositor will receive interest rates that are typically higher than standard savings account rates. Certificates of deposit are commonly available in 3 month, 6 month, 9 month, 1 year, and multiple year lengths of time. Quite often, the longer the deposit term, the higher the interest rate you will receive.