What are CD's when it comes to a financial point of view?

Answer 1

A CD is a Certificate of Deposit.

It's sort of like a savings account except you deposit the money for a specific period of time, like 6 months or 1 year, etc. You agree to leave the money there for that long and you are paid a higher interest rate the long you agree to leave it. You can take the money out but you won't get the higher interest rate if you do.

Banks will pay higher interest rates for a 3 year CD than a 1 year CD.

Answer 2

Certificate of Deposit. Basically you give a bank $$$ and they pay you a fixed interest rate when the term is over. Example 4% for 12 months. $10,000 at x 4% = $400.00. The bank pays you $10,400. Generally you can not touch the money till the term is up. If you withdraw the money too soon there can by fines or penalties. It's a very conservative way to make a little money with little risk involved.

Answer 3

a CD is a certificate of deposit. You can get one at your local bank. Typically you deposit a specified amount of money into a CD for a specific amount of time ranging from 6months to a year at a specific amount of interest.

For example, if you put 1000.00 in a 6 Month CD at 7% interest when the CD matures you will have 1000.00 plus the 7% interest

Answer 4

Certificates of deposit. They earn more interest than a savings account. You deposit a certain amount of money that you cannot access again until it matures with interest. The longer the term, the higher the interest. It's a good way to grow money when you don't need to spend it right away.

Answer 5

Certificate of Deposit.
You agree to leave your money in a bank for XX amount of time. The bank pays you a pre-arranged amount of cash for usage of your money. The bank - or financial institution - uses your money (along with many others) to make large short term investments.