A CD, or Certificate of Deposit, is a financial product offered by banks and credit unions that allows individuals to deposit money for a fixed period of time. In return, the institution pays interest on the deposited amount, typically at a higher rate than regular savings accounts. The term can range from a few months to several years, and withdrawing funds before the maturity date usually incurs a penalty. CDs are considered low-risk investments, making them suitable for conservative savers. They are insured by the Federal Deposit Insurance Corporation (FDIC) in the U.S. up to certain limits, providing additional security for depositors.