A certificate of deposit (CD) is a product offered by banks and credit unions in which a customer deposits a lump-sum amount and leaves it untouched for a predetermined period of time, while it grows over time via a locked-in interest rate. CDs are appealing to many investors as they provide a safer and more conservative investment alternative to stocks and bonds, offering lower opportunity for growth, but with a non-volatile, guaranteed rate of return. Although you lock into a term of set duration when you open a CD, there are options for exiting early should you encounter an emergency or change of plans. Most banks, credit unions, and brokerage firms offer a menu of CD options. The top nationally available CD rates are typically three to five times higher than the industry average for every term. Certificates of Deposit are FDIC insured and offer a fixed rate of return if held to maturity. Brokered CD"s sold prior to maturity in the secondary market may result in loss of principal due to fluctuations in the the interest rate or lack of liquidity. Brokered CD's are registered with the Depository Trust Corp. "DTC". Brokered CD's with step-down and/or call provisions may be less favorable than traditional CD's without these features.