Certificate of Deposit is a money-market bond redeemable without penalty only on maturity. It is a certificate that has a specific fixed rate and it can be given out in any denomination. This is usually given by commercial banks and is insured by the FDIC. In addition, this certificate of deposit is issued by banks in a form of promissory note. The term for this is covered from one month to five years. It is also a time deposit that limits the holders from withdrawing funds on demand. Generally, a penalty will incur if the holders will withdraw the money. Having a certificate of deposit is an excellent way of saving money and at the same time earning interest. Therefore, if you are planning to get a certificate of deposit, just ask your bank and you must have enough money to get one, of course. Its interest is usually compounded monthly. Moreover, if you tend to invest between $200 to $2,000, you must consider having a certificate of deposit – if you want your investment to be safe.