2007-07-05 14:16:38 · 4 answers · asked by tattooed_gurl_sc 1 in Business & Finance ➔ Personal Finance
A CD is a certificate of Deposit with a Bank or other financial institution, it pays a set percentage for a set time. i.e. $10.000 cd for 24 months pays about 4-5% payable at the end of the 24 months. A Savings Bond is a US Government certificate, you pay a certain amount for it in a Denomination you determine and them you keep it until it accrues enough interest to equal the denomination you bought. i.e. You might pay $18.50 for a $25.00 Bond and must keep it 6 years to get the whole $25.00.........Nuf Said
2007-07-05 14:30:25 · answer #1 · answered by Elo Fudpucker 5 · 0⤊ 0⤋
You got your answers but the question is, do you need the money in the near future. If not you can a cd tax deferred for 1 year and not pay interest, you can roll it over every year. Don't let the Bank try to get you into the stock market because you could lose your shirt if it has a bad month.
2007-07-05 14:44:57 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Click on Yahoo Finance, scroll down to Education - click on Investing 101. Look at the Types of Investment and click on CD or Savings Bond. This should explain it fully.
2007-07-05 14:41:13 · answer #3 · answered by Ruby 4 · 0⤊ 0⤋
A CD is issued by a bank; a saving bond comes from the federal government.
I don't like either one because of the early withdraw penalties. I prefer online savings accounts (e.g. ING Direct) and money market funds (e.g. Vanguard Prime Money Market).
2007-07-05 14:31:01 · answer #4 · answered by Curtis Strangelove III 7 · 0⤊ 0⤋