Should I put my money in a CD?

Answer by  bjohnst (23)

A CD is an excellent device to obtain a higher amount of interest than a bank account over a short term. Although it is not a good long term investment tool it is very useful when you have a large bank account yet don't need all of it in the form of ready cash.

Answer by  Robs4thecubs (422)

There are many advantages to having a CD. By having a CD, the interest rate of return is much higher than in a savings account or banking account, usually up to 15x's as much. Right now is not a good time for CD's though as the interest rates are low because of the economy.

Answer by  SallyJ64 (3121)

CDs have a higher interest rate than a savings account. The advantage is it is risk free, you just can't access the money for the duration of the CD

Answer by  Lisa6938 (485)

A CD is an ultraconservative investment. It offers a guaranteed rate of return on a specified maturity date. The rate of return is often quite low, offering little growth value.

Answer by  chrisshah (172)

CDs usually pay higher interest rates than savings accounts. For example, as of June 11, 2010, 2 year CDs pay 1.5% interest, while the average savings account pays less than 0.5%. However, keep in mind that you will have to pay penalties for early withdrawals

Answer by  bolojo19 (19)

The advantages of putting your money in a cd. one you will not be able to touch it for at least six months if you do there will be a penalty. Two you will have the chance to roll the cd over again when the time period for the cd is up. You also have a chance to transfer the cd to another account you have with that bank when it matures

Answer by  Carol37 (569)

Only if it is short time. You will earn little but it is completely safe. Inflation is coming so be prepared to roll it over into a new better rate. Perhaps, take them six to 12 months at a time so you aren't stuck in a low rate.