A certificate of deposit or CD is a time deposit. CDs are similar to savings accounts in that they are FDIC insured and thus virtually risk-free. The difference with a CD is that they usually have a fixed term (often 3, 6, 9 months, or 1-5 years) and a fixed rate, and in return for keeping the money on deposit for the agreed term, institutions usually grant higher interest rates. It is intended that the CD be held until maturity, at which time the money may be withdrawn together with the accrued interest.