A Certificate of Deposit (CD) is a type of savings account that is offered by banks and credit unions. Unlike a traditional savings account, which allows for easy access to funds, a CD requires the depositor to keep their money in the account for a specified period of time, known as the term. In exchange for this commitment, CDs generally offer a higher interest rate than savings accounts. The interest rate on a CD is fixed, which means that the rate will not change over the course of the term. When the term ends, the depositor can either withdraw the funds and any accumulated interest, or roll over the CD into a new term. CDs are considered to be a low-risk investment option and are insured by the Federal Deposit Insurance Corporation (FDIC) up to the maximum allowed limit.