A term deposit (sometimes referred to as a certificate of deposit or CD) is a savings instrument offered by a bank or credit union that has a fixed date of maturity and a fixed interest rate. A credit union might use the term Share Certificate, Term Certificate, or simply Certificate to refer to the same product. Most term deposits require a minimum deposit amount and may offer rates contingent on the size of the deposit. Term deposits are insured by the FDIC for bank deposits, or by the NCUA for credit union deposits, up to $250,000 per individual depositor. As a term deposit holder, you are committing to leave your funds in the account for the term of the deposit. As a result of that time commitment, rates offered on term deposits are typically higher than traditional savings or money market accounts. Keep in mind that an early withdrawal of funds will likely come with a financial penalty.