2006-08-01 11:08:58 · 3 answers · asked by Anonymous in Business & Finance ➔ Investing
With a CD you get a higher intrest rate but you sign a contract saying you can't touch the money for a certain amount of months or even years where as a savings account you can take out the money anytime you want.
2006-08-01 11:15:11 · answer #1 · answered by Emily C 3 · 0⤊ 0⤋
A CD (certificate of deposit) is an agreement with the bank that your money will be there for a specific amount of time. If you withdraw prior to the time period, there will be a penalty. Different banks have different policies regarding their CDs, as well as different rates.
A savings account is essentially a holding tank for your money that will earn a bit of interest and you have access to the money.. An annuity is more of an investment product that works better for future income - rather than an immediate return.
In terms of best rates, it really depends on the time length you're willing to invest the money. CD rates are generally higher than savings account rates, and annuity rates tend to be higher than the CD rates.
If you're just looking at a short time period - like 6 months to a year, a CD would probably be your best choice.
2006-08-01 11:16:39 · answer #2 · answered by Synique 2 · 0⤊ 0⤋
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2015-02-07 01:58:22 · answer #3 · answered by ? 1 · 0⤊ 0⤋