What is a CD and how do they work? 

A CD is a type of account offered by banks and credit unions that pays interest on a deposit amount for a set period of time. These accounts typically pay a guaranteed fixed rate of return for the duration of the CDs term. Generally, the longer the term, or amount of time you agree to lock up your money, the higher the interest rate. However, withdrawing your money before the term ends will likely result in an early withdrawal penalty. 

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