Receipt from a bank acknowledging the deposit of a sum of money. The most common type, the time certificate of deposit, is for a fixed-term interest-bearing deposit in a large denomination. It consequently pays higher interest than a savings account, though the investor who withdraws money before its maturity date is subject to a penalty. Introduced in the early 1960s, CDs have become a popular method of saving.

Learn more about certificate of deposit (CD) with a free trial on Britannica.com.