A CD is a certificate of deposit, which is a type of savings account. When you put money into a CD, the bank agrees to keep your money safe and to pay you a set interest rate for a certain length of time. CDs come with different maturity dates, which is the date on which the CD will reach its final maturity.
When a CD matures, the bank will either pay you the principal plus the interest that has accrued over the life of the CD, or it will reinvest the money into a new CD with a new maturity …