Certificates of Deposit (CDs) - question
By maezee
@maezee (41985)
United States
January 19, 2016 8:05am CST
Does anyone here have any CDs (Certificates of Deposit) with your bank? I have been thinking about this as I have a younger sister who will be going to college in about 5-6 years. It would be nice to put away some money – maybe a thousand or so at the minimum – and gain a little bit of interest on it. I am such a newbie that I don’t even know where to begin with this.
Do you have a CD? How many years is the term? How did you decide which financial institution to do this with? Has it gained any interest? Any advice is appreciated…Thanks!
2 people like this
2 responses
@mommaj (23112)
• United States
19 Jan 16
Most cds have a minimum amount deposit. You have to shop around to find the best interest rate, the length of terms, find out if there are any penalties for early withdraw and how much. I have really bad news, you aren't going to make much interest in banks. They are your safest bet. Since you only have five or six years you might want to think about a stock or mutual fund. My best recommendation is think about when you will want the money out. Stocks and money markets always go down around the years ending in 9 or 10. Be prepared to take it out before the bottom drops out and then put it back in after it does. LOL
1 person likes this
@mommaj (23112)
• United States
23 Jan 16
@maezee Yes I have. The interest is really lousy even if you put 50,000 in there it doesn't go above 5%. If you take it out early you get penalized. You can probably make just as much interest on a "money market" checking account, also known as an interest bearing checking account. Good luck.
