please respond i desperately need to know
2007-05-20 09:02:23 · 2 answers · asked by weenerdawg9599 2 in Business & Finance ➔ Investing
Certificate of Deposit. Short- or medium-term, interest-bearing, FDIC-insured debt instrument offered by banks and savings and loans. CDs offer higher rates of return than most comparable investments, in exchange for tying up invested money for the duration of the certificate's maturity. Money removed before maturity is subject to a penalty. CDs are low risk, low return investments, and are also known as "time deposits", because the account holder has agreed to keep the money in the account for a specified amount of time, anywhere from a a few days to many years.
2007-05-20 09:09:47 · answer #1 · answered by klynnr_1981 4 · 0⤊ 0⤋
CD stands for certificate of deposit. Banks are one place to get them. You deposit an amount of money for a particular period of time - might be 6 months, or 5 years - you choose, from the timeframes they offer. The rate of interest you get depends on the length of time.
2007-05-20 16:04:46 · answer #2 · answered by Judy 7 · 0⤊ 0⤋