A Certificate of Deposit (CD) is a financial product offered by banks and credit unions that allows individuals to deposit money for a fixed period, typically ranging from a few months to several years. In return for locking in their funds, depositors earn a higher interest rate compared to regular savings accounts. When the term of the CD ends, known as the maturity date, the depositor can withdraw the initial amount plus the earned interest. However, withdrawing funds before this date usually incurs a penalty, making CDs a suitable option for those who can commit their money for a set time.