A CD is a certificate of deposit. What you do is you deposit a certain amount in the bank for a fixed period of time. Until that time is over, you cannot withdraw the money. If you decide to withdraw the money, the certificate of deposit is no longer valid, and you will also be charged with a penalty. But, if you do not withdraw it then the money has interest. For example, my bank gives me 5% interest monthly on the money that I put into my CD. I put it in for 6 month. So every month I get 5% of the amount I put into there. After 6 months, I'm going to have all my money plus interest. You can choose how long you want a CD. The time ranges anywhere from 1 week to 10 years..
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