My friend has a CD at her bank?

Question

Does anyone know about money CDs? I don't know anything about them. But I've heard cds a couple of times and now I'm curious. Thanks for your help

Answer 1

CD = Certificate of Deposit

"A certificate of deposit or CD is a time deposit, a financial product commonly offered to consumers by banks, thrift institutions, and credit unions.

Such CDs are similar to savings accounts in that they are insured and thus virtually risk-free; they are "money in the bank." (They are insured by the FDIC for banks or by the NCUA for credit unions.) They are different from savings accounts in that the CD has a specific, fixed term (often three months, six months, or one to five years), and, usually, a fixed interest rate. It is intended that the CD be held until maturity, at which time the money may be withdrawn together with the accrued interest. While Domestic CDs are USD denominated CDs, Yankee CDs (YCDs) are USD denominated CDs issued by the US branch of a foreign bank."

Answer 2

A CD is a special account where you put money in. You can start with a certain initial amount and you can add to it. The catch is that you cannot take money out of it. The CD has a contract from 6 month to how many numbers of years you want. They give you interest on your money. You can always take money out of it but you will be penalized for it for breaking the contract. Its a percentage but, I don't know if its equivalent to the interest accumulated to that point or more.

If you have a steady job a good idea is to start a cd and have your bank take money out of your check and out some into the CD. I had one where I put $100 each month. Over 4 years I had like $4,000 to $6,000. I used that money to do roof repairs.

Answer 3

A CD or Certificate of Deposit is a type of savings account.

The terms and Conditions of CDs differ from financial institution to Financial institution.

The Basic CD is you put a certain amount in for a certain amount of time at a certain interest level and don't touch the money for that period of time.

The periods of time are the most consistent from 6 months to 2 years. Although some places will have longer ones and other have shorter ones.

Most financial advisers will tell you that there are much better options to invest money (you are basically investing your money in your bank with a CD). But for the conservative investor and short term investor these are decent options as they stable and relatively short term.

Answer 4

IMPORTANT- The truth about CD's.
Okay, so you get a 10K CD at 5% interest for 12 months. You will have 10,500 at the term. Pretty good, hun! Well, not so good because there will be a 1099 form issued on the earned interest. Uncle Sam needs his tax on that 500, dammit. Now deduct the amount of tax you pay from the 500 you earned. Your rate of return will probably figure at 2.8-3.2% for the 12 month period.
It may be wise to invest in an annuity if you don't need your money right away. Your initial investment is guaranteed and there's usually a signing bonus if you get a fixed index annuity. Of course the term is longer. Good luck.

Answer 5

Certificate of Deposit: You give the bank a preset amount of money for a preset amount of time and they pay you a present amount of interest.

Example: An 18 month $5000 CD at 3.5% annual interest.
At the end of the 18 months you will get your $5000 plus $265.60 back.

CD will normally pay a much better rate than a regular savings account.

Answer 6

what do you want to know about them?? You give the bank your money to put on the cd, and then you get an interest rate for ever how long your cd term is. CD's are the risk free way to go, if you dont want to loose your money in stocks and such then put it on a cd.

Answer 7

I've had CDs from time to time. But I've managed to have a better return with a money market account. We currently get about 3.5 on ours. If there is an emergency we can have instant access to it. With a CD you can still have instant access but pay a hefty penalty if you take the money out, frequently three months interest.

Answer 8

Certificate of deposit. Pay more interest than a normal account because you must leave your money in for a certain amount of time, say 6 months or 3 years.

Answer 9

"CD" stands for "Certificate of Deposit". It is one type of savings account. Typically, your money is locked in the savings account for a particular period of time, and you can NOT withdraw it until the time is up. But because it is locked in, it earns higher interest than a typical "liquid" savings account where you can make deposits and withdrawals at will.

Check here for a chart about CDs offered at one bank:

http://www.bankofthewest.com/BOW/main.jsp?ChId=d056714c7122ff00VgnVCM10000087c35c92____

Answer 10

google it( my friend has them)