CD (certificate of deposit)

A CD (certificate of deposit) is a bank deposit that earns a fixed APY for a set term, from a few months to five years or more, in exchange for a penalty if you withdraw early.

CDs at FDIC-insured banks and share certificates at NCUA-insured credit unions are insured up to $250,000 per depositor, per institution, per ownership category. At maturity there is a short grace period to withdraw before the CD renews.