Certificate of deposit (CD). A certificate of deposit is an investment vehicle whereby an investor's money is able to earn a higher rate of interest than a regular account. In this type of investment, the funds are 'locked in' for a predetermined period, often with a guaranteed rate of return. Some institutions allow investments as low as $100 but it is recommended to buy CDs of over $100,000 to $250,000 as this is the minimum amount that is insurable thus making the principle safe.
