CDs - Certificates of Deposit....whats the difference with this account, compared to a regular savings account?
2006-11-01 11:54:20 · 3 answers · asked by Anonymous in Business & Finance ➔ Other - Business & Finance
CD is for a specific period of time. A 6 month cd matures in six months. The interest rate you earn is fixed for that period. Therefore, it is very safe. Generally, the rate you earn is low.
2006-11-01 11:59:22 · answer #1 · answered by Nicholas D 1 · 0⤊ 0⤋
the money in CDs are locked for a specified period. if you withdraw any of the principal early, you will most likely have to pay a penalty.
savings accounts don't have that restriction, but can have restrictions on how often you can take money out. they typically pay less interest than CDs
2006-11-01 19:58:50 · answer #2 · answered by loveholio 5 · 0⤊ 0⤋
There is a new way to invest. Its called person to person lending. You review a person's credit details and decide whether to loan them money, you can get quite a good percentage rate as well(average range from 10-30%).
The site is here http://www.prosper.com
2006-11-01 21:11:24 · answer #3 · answered by Rena 3 · 0⤊ 0⤋