A certificate of deposit (or CD) is a savings instrument offered by a bank that has a fixed date of maturity and a fixed interest rate. Most CDs require a minimum deposit amount and may offer rates contingent on the size of the deposit. Certificates of Deposit are insured by the FDIC for bank deposits, up to $250,000 per individual depositor. As a CD depositor, you are committing to leave your funds in the CD for the term of the CD. As a result of that time commitment, rates offered on CDs are typically higher than traditional savings or money market accounts. Time Deposits require a substantial penalty for early withdrawal.