finance-what is a cd
2006-07-23 09:47:59 · 10 answers · asked by reflectedscorpio 1 in Business & Finance ➔ Investing
A CD is a "certificate of deposit", a financial instrument which allows you a higher interest rate than a traditional savings account. The caveat is that you must leave the money in the account for a prescribed period of time. Typically, the longer you contract to leave it, the higher your interest rate.
Some people with generated a CD each month on an annual contract. This gives them some liquidity at all times. Then they can opt to reinvest that CD at the same or higher percentage rate, or take it out without penalty, if they need the cash.
2006-07-23 10:40:44 · answer #1 · answered by Iris 3 · 1⤊ 0⤋
A CD mean Certificate of Deposit.....It is usually purchased at a bank ect. It is basically a document agreeing too pay you set amount of interest for set amount of time for set amount of money.... If you are interested in purchasing Cd's It is recommended that you use a laddering system meaning that you purchases something like a 6 month CD.... a 9 month CD.... and a 12 month CD.... when the 6 month CD matures you should invest it into a 12 month and the same when the 9 and 12 month mature... that way your money is constantly rotating ...It is always best to make sure that you build yourself a safety net account so that way if you need money you don't have too cash in your Cd's bonds of stocks... You can set something like that up at ING Direct.Com... tipicaly you would set aside say 6 months worth of your gross pay into it, once that is done then you should think of investing in Cd's bonds or stocks ect.
I hope this helps!
2006-07-23 17:12:50 · answer #2 · answered by General Custer 4 · 0⤊ 0⤋
A CD is a Certificate of Deposit. In actually, it is a promissory note from the bank. When you buy a CD, the money used to buy the CD is actually a loan to the bank. The CD itself is a promissory note agreeing to pay you a certain amount of money within a certain time frame. They do give you a higher rate of return than a savings account, but you are restricted from withdrawing the money prior to the maturity date. Early withdrawals will incure penalties.
2006-07-24 09:06:13 · answer #3 · answered by 4XTrader 5 · 0⤊ 0⤋
Certificate of Deposit
http://www.investorwords.com/797/CDs.html
2006-07-23 16:51:15 · answer #4 · answered by daddysboicub 5 · 0⤊ 0⤋
Certificate of Deposit. You can get them from almost any bank. They use your money to invest in the market and pay you to do so. You can usully make a 3-5% profit doing this.
2006-07-23 18:01:53 · answer #5 · answered by dkwr14 3 · 0⤊ 0⤋
Certificate of Deposit. Usually you invest a certain amount of your money for a certain period of time and get interest (higher than savings).
2006-07-23 16:51:50 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Certificate of Deposit... It also means Compact Disk
2006-07-23 18:05:26 · answer #7 · answered by dianameza 4 · 0⤊ 0⤋
its a sliver disc that you put music on and then you listen to it on your cd or dvd player.
2006-07-23 16:51:33 · answer #8 · answered by Anonymous · 0⤊ 0⤋
its a thing to listen to like theres music in there
2006-07-23 16:54:30 · answer #9 · answered by tdang424 7 · 0⤊ 0⤋
It stands for crocodile dong. DUH.
2006-07-23 16:53:20 · answer #10 · answered by El Duderino 6 · 0⤊ 0⤋