A certificate of deposit with interest payments that are placed with a bank for a specific period. CD in Bank CDs stands for a certificate of deposit. Not only do banks sell them, but they are also sold by credit unions and thrift institutions.
A bank CD is similar to a savings account. This is because they are both money in the bank that is insured and have no risks. The FDIC, which stands for the Federal Deposit Insurance Corporation insures CDs for banks. CDs for credit unions are insured by the National Credit Union Administration
