Glossary A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | 1 | 3 | 4 | 5 Definitions by InvestorWords.com   What is...? Certificates of deposit (CDs) A certificate of deposit (CD) is a high-yield account that requires no maintenance-you just sit back and watch your money grow. How CDs Work You choose a fixed period of time for which you want the account (depending on your financial goals, this might be anywhere from three months to ten years) and in return, you get some of the highest interest rates in the nation. You can let your interest compound or opt to receive monthly or quarterly interest checks. CD Features Guaranteed interest rates Daily compounding of interest to maximize savings Electronic transfer service of interest checks Note: A penalty fee may be charged to your account if you withdraw the principal amount before the CD maturity date. Copyright ©2009 by InvestorGuide.com. All Rights Reserved.