Explanation
The abbreviation 'CD' stands for C: Certificate of Deposit. A certificate of deposit (CD) is a financial product offered by banks and other financial institutions. It is a time deposit, which means that the money is deposited for a fixed period of time, ranging from a few months to several years, and earns a fixed rate of interest. CDs are generally considered to be safe and low-risk investments. They are also insured by the Federal Deposit Insurance Corporation (FDIC) in the United States, up to a certain amount, making them a popular choice for savers who want to earn a higher rate of interest than a savings account without taking on too much risk.
