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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.
We recommend that if you' have a lot of money to consider investing it in another investment such as stocks and bonds instead.
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