I want to invest $100,000 in CDs. CitiBank is offering 6-month CD account at 5,5% APY. Is it a good idea? Please tell me what you think. Thank you.
2006-07-25 04:19:08 · 3 answers · asked by sylver890 3 in Business & Finance ➔ Investing
If you are looking for a conservative investment and to protect your principal, a CD is fine. If that's the best rate you see right now, compare it to the three-month CD. Interest rates are edging higher, so don't get locked in too long. I think six months is probably the longest time I'd want to commit to right now.
2006-07-25 04:24:46 · answer #1 · answered by Mike S 7 · 2⤊ 0⤋
CD's are almost always a good investment. I would buy a 6 month CD right now. Because in late August, the FED is expected to raise the interest rates. THE rates should increase for a few years before the fed lowers the interest rates. Once that happends buy a longer CD, maybe 3 yrs, then you havae the high interest rate locked in, even when the fed lowers rates. I hope this helps.
2006-07-25 05:43:19 · answer #2 · answered by Chris W 3 · 0⤊ 0⤋
CD's are a safe investment with a gauranteed return, you get what you sign for, but if you have any understanding of the markets, you might want to diversify, and put as much as you feel safe with into stocks, you can lose there, but you can also potentially make a lot more, you can't lose with CD's, but you can't win big either even modest average gains on stocks are likely to be about twice what your best CD's will pay. That's just my two-cents, if it was me it would all be in the market.
2006-07-25 04:35:35 · answer #3 · answered by jc_usmc_1998 2 · 0⤊ 0⤋