I am looking into CDs and there are different periods such as 6 months to 60 months. How do they work?
2007-02-07 04:37:10 · 3 answers · asked by E S 2 in Business & Finance ➔ Personal Finance
You keep your money in the account and it collects interest at the current interest rate for the time period you select. At the end of the time period you can renew the CD to collect more interest or remove the money from the account.
2007-02-07 04:45:19 · answer #1 · answered by Sabres Fan 4 · 0⤊ 0⤋
You deposit a set amount of money - say $2000 - into an account for a predetermined period of time - say 6 months - that you can not touch (under heavy $$$ penalty) for that time but it earns a higher rate of interest than a savings account. You can then roll it over at the end of the time frame or withdraw it.
2007-02-07 05:45:06 · answer #2 · answered by zippythejessi 7 · 0⤊ 0⤋
ask them because there is a few different ones to chose from.
2007-02-07 04:45:31 · answer #3 · answered by ♥For3v3r♥ 2 · 0⤊ 1⤋