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What are Certificates of Deposit? (CDs)A certificate of deposit (CD) is a stable, short-term cash investment, comparable to a traditional savings account or money market account. A certificate of deposit (CD) is a savings account that holds a fixed amount of money for a fixed period of time, such as six months, one year, or five years. Certificates of deposit or CDs, on the other hand, can be useful for saving and earning interest on money that you won't need in the near-term.
