Am I locked into my CD Intrest rate at the time of purchase or sale? that is, If I buy it at 5.000 and the day I sel it it's performing at 7.000 which rate do I get?
Also, What is better, a daily, monthly, quarterly, semi-annual, or annual reporting CD? Obviously, I am new and I want to make informed decisions.
Thank you
2007-11-06 08:17:51 · 2 answers · asked by rabidkitty 7 in Business & Finance ➔ Personal Finance
A CD is a very conservative investment, typically insured up to 100k by the government, which usually has a low rate of return. You get the rate in effect when you put money in the CD, on the day you buy it. At maturity, you get your money back, and the interest. If you get out of the CD early, you typically lose some of the interest.
CDs are currently returning barely the current rate of inflation, and inflation is threatening to rise, so I'd advise short-term CDs, as interest rates may increase due to inflation risk before too long, and are pretty low, now.
2007-11-06 08:24:03 · answer #1 · answered by B.Kevorkian 7 · 0⤊ 0⤋
Low CD rates are a mirrored image of the financial device. the sturdy fringe of low rates is low inflation. we could be greater effective off with low CD rates if it potential that our expenditures do not bypass up dramatically..... it is a sturdy risk with larger CD rates.
2016-12-15 18:45:49 · answer #2 · answered by Anonymous · 0⤊ 0⤋