Certificate of deposit (CD)

A bank account that earns interest and the depositor agrees not to withdraw money for a set period of time in exchange for a high interest rate

The longer that your money remains in a CD, the higher the interest you can earn, which is normally more than a regular savings or money market account. CD accounts can last typically from 7 days to 3 years and have a minimum deposit of about $500. Overall, CDs are a safe investment since you are at low risk of losing your initial deposit.

See: Down payment