US - Finance - Investment

A “certificate of deposit” (also known as a CD) is a kind of savings account where the issuing bank/union pays interest in exchange for holding a specific amount of money for a predetermined duration of time, such as “six months, a year, or five years.” Among the safest ways to save money are certificates of deposit (CDs).

In essence, a bond is a loan that is requested/issued by a “business or government agency” from investors. It is also a kind of security that has loan-like characteristics, a debt instrument that enables issuers to finance capital needs, a fixed-income instrument for debtholders, and "a documented commitment to repay borrowed funds at maturity date and to pay interest meanwhile."