Most people know that banks and credit unions issue CDs.
However, not everyone knows that brokerage firms can offer them. They are offered in a wide range of maturities, and some make monthly payments. If you sell your investment prior to maturity, you do not incur any interest penalty as you would with a CD from your local bank. However, fluctuations in interest rates might cause you to receive less money than you paid. These securities are probably best suited to investors seeking a safe haven for their money for specified periods of time.