Investors searching for relatively low-risk investments that can easily be converted into cash often turn to certificates of deposit (CDs). A CD is a special type of deposit account with a bank or thrift institution that typically offers a higher rate of interest than a regular savings account. Unlike other investments, CDs feature federal deposit insurance of up to $100,000. Investors should be skeptical of promises of above-market returns and be careful to confirm the legitimacy of the CD with the named issuing bank or thrift institution. The following are examples of CD sales that have triggered SEC.
