What "certificate of deposit" means in finance

A Certificate of Deposit (CD) is a financial product offered by banks and other financial institutions that allows investors to deposit money for a set period of time and earn interest on it. CDs typically offer higher interest rates than traditional savings accounts, but the money cannot be withdrawn until the maturity date of the CD without incurring a penalty. CDs can range in maturity from a few months to several years, and the longer the term, the higher the interest rate. CDs are considered a low-risk investment because they are FDIC-insured up to a certain amount.