certificate of deposit (CD)
An interest-bearing, time-obligated debt instrument issued by a bank or savings and loan. CDs typically earn a higher interest rate than regular savings accounts in exchange for the depositor's willingness to tie the Funds up for the stipulated period of time. CDs are issued for periods ranging from three months to several years. A CD can be redeemed at any time, but an early withdrawal penalty will apply if it is redeemed prior to the maturity date.
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CD
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money market deposit account
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