CD stands for Certificate of Deposit.

It is a loanership investment meaning you are agreeing to loan the bank your money for a predetermined period of time and they are going to pay you interest and returning your money to you at the end of that period.

CD’s are guaranteed by the bank, and if the bank is a member of the FDIC, backed up by the Federal Deposit Insurance Corporation.

CDs are not a great vehicle for wealth accumulation.

A CD can be a good place to park an emergency reserve or, if you’re older, just earn a little bit of interest but have safety for your principal.