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Zions Direct University: Certificates of Deposit

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This story is sponsored by Zions Direct. Learn more about Zions Direct.


If you are looking for a savings product that may provide a greater return than the average checking or savings account, you might consider Certificates of Deposit - or CDs. CDs are issued by a bank. The issuing bank pays interest to the holder of the CD, and then returns the original investment at the end of the term, which can be anywhere from a few months to several years.

A few terms to remember when investing in CDs are APR and APY. The APR is the fixed amount of interest paid in one year, while the APY is the amount of interest paid in a year when compound interest, or interest earned on your interest, is taken into account.

FDIC insurance is a benefit shared by many certificates of deposit, insuring CDs up to $250,000 per account registration per bank. FDIC-insured CDs can be purchased at local banks and through an investment brokerage such as Zions Direct.