Are CDs (certificates of deposit) halal?
No — a CD is a time deposit that pays guaranteed interest; the lock-up changes the liquidity, not the riba.
A certificate of deposit is a loan to the bank for a fixed term at a fixed rate — the cleanest possible example of riba al-nasi'ah (interest for time). No tolerance threshold applies because the entire return is interest.
Islamic banks offer term products with similar feel — murabaha or wakala 'fixed term' accounts — where the return comes from trade or agency investment and is an expected (not contractually guaranteed) profit rate. Where those aren't available, sukuk funds serve the fixed-income role.
The compliant alternative
Islamic fixed-term deposits (murabaha/wakala) where available; otherwise sukuk funds like SPSK.
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What about 'sharia-compliant CDs' some US banks advertise?
A few US institutions genuinely structure murabaha-based terms; verify the certification and structure documents rather than the product name. If the disclosed return is a guaranteed APR on a deposit, it's a CD with branding.
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Educational summary of commonly held scholarly positions — not a fatwa or financial advice. Where scholars differ, we say so; for a binding ruling on your situation, consult your scholar. See how Penny screens.