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Certificate of Deposit
(CD) Definition: This is much like a bond from a bank because you give a bank money for a specified amount of time and they agree to pay you back at that time, plus interest. The length of a CD usually varies from one month to five years. TeenAnalyst Advice:
If you have a lot of money in the bank, CD's allow you to put that
money to work for you. They're also nearly risk-free investments.
However, their interest rates vary with the current market interest
rates. At times, you may receive a very very low interest
rate.
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