What is the meaning of CD in Finance category?

A Certificate of Deposit is an investment product offered by banks and non-banking financial institutions around the world. A CD requires a customer to park their money for an agreed amount of time with the provider. As users do not have access to their deposit before the maturity, CDs generally offer higher interest rates compared to normal savings accounts. One can withdraw money or break a CD before maturity date as well but will have to pay a penalty fee. CD deposits are conservative and safe forms of investment.