A certificate of deposit is also known as a CD. They are similar to a savings account; the main difference is that you agree to leave the money in the bank for a certain period of time 3,6,12 months or more. CD's almost always have a higher interest rate then savings accounts do and the interest rate is typically fixed. Some CD's are also indexed to the stock market or bond market. There is also
. usually a penalty for early withdraw of the money. A certificate of deposit calculator can be found at http://www.bankrate.com/calculators/savings/bank-cd-calculator.aspx
