2006-07-19 07:56:51 · 5 answers · asked by novahank 1 in Business & Finance ➔ Investing
A CD (Certificate of Deposit) is similar to a savings account.
It earns a stated rate of interest and requires a minimum deposit to open. But it differs from a savings account because it requires that you tie up your money for a certain length of time, and there are penalties for early withdrawal.
For example, if you invest $1000 into a 6 month CD paying 5% interest, you'll have to leave that $1000 alone for those 6 months. At the end of that 6 month period (maturity), you'll have the option of withdrawing the money or putting it into another CD.
Why use them instead of savings accounts? Because they tend to offer a higher interest rate.
2006-07-19 18:56:04 · answer #1 · answered by msoexpert 6 · 0⤊ 0⤋
The Financial is a Trip-hop group from the Bronx;
You're gonna love this CD!
2006-07-19 09:15:31 · answer #2 · answered by Yardbird 5 · 0⤊ 0⤋
CD is a Certificate of Deposit, it is efrectively an interest bearing short term note that pays small interest and matures in usually 6 months to a year
2006-07-19 07:58:57 · answer #3 · answered by foxrab64 1 · 0⤊ 0⤋
It is a compact disc that talks about banking, it's worthless but I will buy it from you for $5.00.
Contact me.
2006-07-19 08:00:07 · answer #4 · answered by Anonymous · 0⤊ 0⤋
I'll give you $6.50
2006-07-19 08:01:09 · answer #5 · answered by TigerLilly 4 · 0⤊ 0⤋