is a cd better than a savings account?

Question

I am trying to find a way to get the most out in the long run for the money that I put in.

Answer 1

On a long term investment, yes, a CD is definitely better than a savings account. Long term, in financial lingo, designates that you're intending on keeping the money in a cd, at minimum, a year. If you're looking at opening the cd for anything less than a year, you'd be looking at a short term investment and with that, you'd be better to compare the interest rates. Regardless, even if you were looking at a 3 month cd, it's still better than 3 months in a savings account.

But bear in mind that the interest rate you're going to get on a cd will depend on the amount of the cd and how long you're going to purchase the cd for. A $1000.00 9-month cd will get assigned a higher interest rate than a $1000.00 3-month cd. A savings account will change depending on the bank's qualifications, but they typically designate higher interest rates based on size of the account and little else. A bank will designate a higher interest rate to someone with a $20,000.00 savings account than someone with a 500.00 savings account.

Answer 2

Typically a CD has better rates than savings accounts, but your money is stuck their for the length of the CD or you have to pay a penalty. You may also want to check the rates on a Money Market account... you can withdrawal from that in a couple of days without penalty.

Answer 3

Not necessarily, there are many high-yield savings accounts that offer over 4% interest, which currently beats many CDs and money market accounts with way more flexibility. It all depends on how long you can have your money tied up and how much money you have to put away.

Check out this website, you can search for the most competitive rates on CD's, savings accounts and money market accounts.

http://www.bankrate.com/

Answer 4

absolutly, a CD is better than a savings account, since with a cd you can typically get around 3% more interest. only reason everyone dosn't do that is because if you need to take out the $ early there is a fee. if you have a bunch of $$ lying around, put most of it into a CD, just make sure you still have enough $$ put aside in case of a small emergency.

Answer 5

It depends on the rate and if you are going to need the money. With a CD it is usually a higher rate, but you are locked in for a longer time frame. With a savings acct. they are usually low interest, but you can make withdrawals as needed. Please note that if you have a CD and you need money there will probably be an early withdrawal penalty that can hit your principal amount, which would be bad because you would be leaving with less money than what you started out with. And with a savings, you can also have penalties/service charges if that acct. has a minimum balance requirement. Hope this helps!

Answer 6

Yes it is but a money market acount is better then both.
CD account Is not good cause your locked in
Saving account your not locked but interest is way to low.
Money market you get the same interest as a CD but like a saving account you are not locked in.
Moneymarket account is the way to go!

Answer 7

hi- How previous is "slightly older" 2 years? 5 years? 10 years? How plenty are you making plans to take a place? For the quick term a CD or money marketplace could be effective. If the time is longer you ought to look at determination investments alongside with a various portfolio of mutual money or municipal bonds. talk to a professional approximately this and that i'm useful they are going to attempt to help.

Answer 8

Yes