A Certificate of Deposit (CD) is a type of savings account that holds a fixed amount of money for a fixed period of time, such as 6 months, 1 year, or 5 years, and in exchange, the issuing bank pays interest.

CD interest is typically calculated using compound interest, which means you earn interest not only on your initial deposit but also on the accumulated interest over time.

CD rates are influenced by several factors including the Federal Reserve rate, term length, deposit amount, and the bank's own policies.