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A Certificate of Deposit (CD) is a savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate and can be issued with minimum balance. When you open a CD, your money is on deposit for a specific time period. For agreeing to keep it on deposit for a specified time period, you earn more than you would in a regular savings account. If you cash it in before its maturity date, you pay a penalty.
Certificate of Deposit Account Registry Service or CDARS, is the easiest most convenient way to access FDIC insurance on large deposits.
Any organization or individual who wants to combine the convenience of working directly with a single bank with the security of FDIC insurance can benefit from using CDARS.