Which term describes a savings certificate entitling the bearer to receive interest, with a maturity date, a fixed interest rate, and FDIC insurance?

• A. Budget
• B. Career
• C. Certificate of Deposit (CD)
• D. Chex-Systems

Answer: (C)

A Certificate of Deposit is a time-locked savings product where you deposit money for a fixed term and earn a guaranteed, fixed interest rate. Because it’s a bank deposit, it’s insured by the FDIC up to the standard limit. The description in the question—receiving interest, a maturity date, a fixed rate, and FDIC insurance—fits a CD perfectly. Other terms listed don’t describe a savings deposit: a budget is a spending plan, a career is a job path, and Chex-Systems is a banking-history service. CDs often have penalties for early withdrawal, so you choose the term based on when you’ll need access to the funds.