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The Certificate of Deposit is a vehicle that allows customers to gain higher rates of interest, in return for agreeing to deposit their money for a given period of time. Normally, the longer the term of the certificate, the greater the compensation in terms of interest rate. One benefit a CD has over alternative investments is that of safety. Each depositor is insured up to $250,000 by the FDIC. By saving locally, depositors are putting money back into their local communities.
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