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Certificate of deposit accounts are a common alternative to standard savings accounts.A CD is similar to a standard savings account in that you deposit money with a financial institution and earn interest on the deposit.
Money market accounts are an alternative type of deposit account that offer interest rates that are higher than standard savings accounts but let you withdraw money without penalty.
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In mainstream culture, the term "CD" is used interchangeably with "compact disc" but in banking a CD is something different entirely.
In personal finance, "CD" stands for "certificate of deposit," which is a special type of interest-bearing account that you can open at financial institutions such as banks, credit unions and savings and loan associations.