In investing, a CD, or Certificate of Deposit, is a low-risk product offered by banks that pays fixed interest over a set term. While CDs don’t fluctuate with stock market volatility, current yields—around 5.25% for 12-month terms—are competitive compared to S&P 500 dividends averaging 1.35% in Start by seeing how much interest you can still earn with a high-rate CD here . Certificates of deposit are available at national banks, local and regional banks, credit unions and online banks. For this list, credit unions with hyperlocal eligibility requirements were excluded. In 2024, tech sector forecasts show mixed signals—AI stocks surging but biotech lagging. Knowing what is a CD in investing helps balance portfolios against such sector disparity, using CDs for capital preservation.
