What is the difference between a certificate of deposit CD and a time deposit?

What is the difference between a certificate of deposit (CD) and a time deposit Introduction: The Basics of CD and Time Deposits Hello everyone! Welcome to our video on the distinction between Certificate of Deposit (CD) and Time Deposit. These are two types of financial instruments offered by banks, often chosen by individuals looking to grow their savings. While they share some similarities, it's essential to understand their unique characteristics. Let's dive in! Understanding Certificate of Deposit (CD) A Certificate of Deposit, commonly known as a CD, is a fixed-term deposit offered by banks. It's a low-risk investment option where you deposit a specific amount of money for a predetermined period, typically ranging from a few months to several years. The bank, in return, offers you a fixed interest rate, which is usually higher than regular savings accounts. The longer the maturity period, the higher the interest rate. CDs are known for their stability and guaranteed returns. Exploring Time Deposits