Short for the Certificate of deposit, kind of time deposit offered by banks, credit unions and other financial institutions that can't be withdrawn unit its maturity date (a specific date). CD has predetermined maturity date (usually six months) until that maturity date the depositor can't withdraw money. If the money is withdrawn before CD maturity date, banks usually charge penalty calculated on the basis of withdrawal date of funds. CD, generally, have fixed interest rate on the deposit which might be withdrawn at the date of maturity as accrued interest. Generally the interest rate is calculated as the more the amount of deposit the higher the rate of interest. CD gives the choice for withdrawal interest i.e interest can be withdrawn as it accrued or accumulated amount of interest can be withdrawn