Summary of Certificates of Deposit (CDs)

Certificates of deposit (or just "certificates") have been popular among investors for a long time. Many risk-averse investors find CDs appealing. On top of their relative safety, CDs also provide competitive returns. Credit unions and banks have made available a variety of features to suit your needs, such as varying maturities, variable interest or dividend rates, and small deposit requirements. Compared to many other investments, CDs are simple and easy to understand.

CDs are available in varying maturities as well as with rates based upon different market measures. You can buy them from your local credit union, bank, or investment broker. Compare rates, maturities, and methods of payment when shopping for certificates of deposit.