time certificate of deposit

A time certificate of deposit (CD) is a receipt from a bank acknowledging a deposit of money that earns interest and is payable on or after a specific date, known as the maturity date. Interest rates on time CDs are typically higher than those for regular savings accounts. If funds are withdrawn before the maturity date, the depositor usually forfeits a portion of the earned interest, often three to six months' worth. Banks set their own interest rates and maturity terms, which can range from a few months to several years. In the United States, CDs issued by banks are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per depositor.1234