what is the best way to invest $500 in a short period of time?
how good are CD's (Certificate of Deposits)?
say for example I can get a CA from bank of america for 4% over 3 months, is that a good deal?
also, when you buy a CD, there is absolutely no way you can lose your money, correct? (its not like buying stocks, correct?)
2007-09-25 14:31:57 · 7 answers · asked by starz8 2 in Business & Finance ➔ Investing
could someone please answer my questions above, and explicitly answer this question - is it possible to loose your money (even a little bit) by buying a CD? (i have heard contradicting opinions so I want to know the truth)
2007-09-25 14:39:39 · update #1
You can loose on a CD , but it is rare .
ING and Citi eSavings have rates between 4 & 5 % for savings , and over 5% for CDs .
>
2007-09-25 14:35:34 · answer #1 · answered by kate 7 · 0⤊ 2⤋
Put $500 in B of A for 3 months can earn you 4.--%. You will get your principal and interest back at maturity. If you change your mind and want your money back before its maturity. The bank will charge you a fee and if the fee is more than your earned interest. You lost money.
2007-09-25 21:57:36 · answer #2 · answered by s 2 · 0⤊ 0⤋
Investments generally vary along 2 dimensions.
1. Return on investment
2. Risk.
Usually the higher the risk the higher the return on investment (otherwise people don't invest). With various safe investments your return is pretty small. Is your plan to just deposit your money somewhere or do you really want to turn your $500 into real money.
$500 is not a lot of money and the only want to get a real return is to engage is some manner of risk. You reduce the risk by learning about the investment you are getting involved in. $500 can turn into a lot of money if you buy the right shares, but other investments could include buying and selling collectable items (cartoon cells, comic books, limited edition figurines, WWII memorabilia etc etc), you name it you can do it.
Most banks have a financial consultant that you can talk to for free who will advice you about how to invest your money.
2007-09-25 21:39:10 · answer #3 · answered by flingebunt 7 · 2⤊ 0⤋
Investing (you're not buying) in a CD is totally safe for you. Check "high interest cd" on the internet. Don't invest for longer than 1 year and you'll be in good shape.
2007-09-25 21:40:23 · answer #4 · answered by HH@20 2 · 2⤊ 0⤋
No 4% is not good. You can get that in a money market which is not committed for 3 mos. Of course, $500 is not much money, just put it in the bank.
2007-09-25 21:36:33 · answer #5 · answered by Anonymous · 0⤊ 1⤋
No you will not lose any money in buying a CD, however you should be able to get at least 4.5 to 4.75% in a 3 month CD. Check around for better rates.
2007-09-25 21:41:31 · answer #6 · answered by BangkokBob 4 · 2⤊ 0⤋
song of planting man cost me $500 or so
maybe buy that
2007-09-25 21:35:34 · answer #7 · answered by Anonymous · 0⤊ 1⤋