I have about 20,000 in bank and have heard there is a way to invest it, where I can let the bank keep the money for about a year, without me touching it, and earn interest off of it.
If so, what is the typical interest that I could expect to earn?
thanks :)
2007-04-17 20:15:53 · 3 answers · asked by dragongml 3 in Business & Finance ➔ Investing
It's called a Certificate of Deposit (CD), and it should pay about 5%-5 1/2% per year......depending on the bank. You can also invest in shorter or longer CD's. Or split up the money and invest some in 3months CD's, 6months or 9months CD's. This way your money is not tied up for the whole year.....in case you need it for something.
2007-04-17 20:32:54 · answer #1 · answered by Sauerkraut 4 · 0⤊ 0⤋
the investment you are refering to is a cd and the amount of interest you could expect to earn would be around 4-6% annually which would equate to about $800-1200 if you plan on leaving the money in savings for a long time you should go talk to a financial advisor and invest and let it grow at potentially higher rates through mutual funds.
If you do talk to a financial advisor don't let them put you in a fund that has a sales load of more than 6% or redemption fees
2007-04-18 03:30:22 · answer #2 · answered by the man 3 · 0⤊ 0⤋
it calls term deposit. you can choose 1,3,6,9,12 moths terms or more. The interest rate varies countries to countries, 3%-5% p.a, you may check with bank.
why-not learning investment, so your money will work harder for you?
2007-04-18 03:27:02 · answer #3 · answered by Centurion888 1 · 0⤊ 0⤋