money






 

Question by  Midnight (35)

Should I put my money in a CD?

I need to know the advantages of having my money in a cd.

 
+7

Answer by  bjohnst (23)

A CD is an excellent device to obtain a higher amount of interest than a bank account over a short term. Although it is not a good long term investment tool it is very useful when you have a large bank account yet don't need all of it in the form of ready cash.

 
+7

Answer by  Robs4thecubs (422)

There are many advantages to having a CD. By having a CD, the interest rate of return is much higher than in a savings account or banking account, usually up to 15x's as much. Right now is not a good time for CD's though as the interest rates are low because of the economy.

 
+6

Answer by  SallyJ64 (3121)

CDs have a higher interest rate than a savings account. The advantage is it is risk free, you just can't access the money for the duration of the CD

 
+5

Answer by  Lisa6938 (485)

A CD is an ultraconservative investment. It offers a guaranteed rate of return on a specified maturity date. The rate of return is often quite low, offering little growth value.

 
+5

Answer by  chrisshah (172)

CDs usually pay higher interest rates than savings accounts. For example, as of June 11, 2010, 2 year CDs pay 1.5% interest, while the average savings account pays less than 0.5%. However, keep in mind that you will have to pay penalties for early withdrawals

 
+5

Answer by  bolojo19 (19)

The advantages of putting your money in a cd. one you will not be able to touch it for at least six months if you do there will be a penalty. Two you will have the chance to roll the cd over again when the time period for the cd is up. You also have a chance to transfer the cd to another account you have with that bank when it matures

 
+3

Answer by  Carol37 (569)

Only if it is short time. You will earn little but it is completely safe. Inflation is coming so be prepared to roll it over into a new better rate. Perhaps, take them six to 12 months at a time so you aren't stuck in a low rate.

 
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