A certificate of deposit (or CD) is a savings instrument offered by a bank or credit union that has a fixed date of maturity and a fixed interest rate.Most CDs require a minimum deposit amount and may offer rates contingent on the size of the deposit. Certificates of Deposit are insured by the FDIC up to $250,000 per individual depositor. As a CD depositor, you are committing to leave your funds in the CD for the term of the CD. As a result of that time commitment, rates offered on CDs are typically higher than traditional savings or money market accounts. Keep in mind that an early withdrawal of funds will likely come with a financial penalty.