20/02/2018
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Certificates of Deposits



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CDs are similar to saving accounts in that they are insured and thus virtually risk-free; they are "money in the bank". They are different from savings accounts in that the CD has a specific, fixed term (often three months, six months, or one to five years), and usually a fixed interest rate. It is intended that the CD be held until maturity, at which time the money may be withdrawn together with the accrued interest. A CD can also be liquidated at the secondary market before maturity.

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