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CD

Last Updated: November 14, 2006 | Related resource areas: Personal Finance

A fixed amount of money deposited with a financial institution for a specified amount of time. An acronym for certificate of deposit, CDs are sold by banks with principal insured by the Federal Deposit Insurance Corporation (FDIC). Brokerage firms may also sell CDs. Interest paid on CDs varies with the amount deposited and the length of time the money is invested.


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Financial Security: Consumer Education, Financial Security: Saving and Investing, glossary

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