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Trading Terms

Certificate of Deposit

The longer the term of the CD, the higher the interest rate. A Certificate of Deposit, or CD, is a financial tool that allows individuals to deposit a specific amount of money with a financial institution for a predetermined period. In return, the depositor earns interest on their investment. The longer the term of the CD, the higher the interest rate, providing an incentive for individuals to keep their money invested for a longer period. This allows for the growth of their initial investment over time.
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