A certificate of deposit, or CD, is an investment in which you give a bank or other lender a set amount of money for a certain time period. This time period could range from 6 months to several years. At the end of the term, the bank will return your money with interest. In the meantime, you get to pay the taxes on interest that you have earned, but do not have access to. Visual Economics takes a look at certificates of deposit in their latest infographic.
Here’s a crash course on Certificates of Deposit, what they do, and how you can use them to make money.
The ABC’s of CD’s @ Visual Economics
You can see the larger graphic is after the break.
