Should I put my money into CD's or a savings account?
2006-04-13 7:26 pm
If i have $1000, and a savings acount pays me 5% annually, and a 6-month CD pays 5%, where do i put it? I'm thinking that wtih the savings account i earn 5% in a year, and with a CD i earn 5% (hypothetically) in 6 months. is this correct?
回答 (6)
2006-04-13 9:43 pm
✔ 最佳答案
May I ask what bank pays you 5%?You are confused.
The 5% CD Rate is Annual not for 6 months.
2006-04-14 9:00 pm
I agree with the person above put your money in a more aggressive place if you don't have financial obligations that warrant a conservative investment. Over, time with compounding of interest you should do a lot better than whatever you noted above. Seems like you're young (1979). If you ask them to make a $50-$100 deposit into a fund every month, in addition you'll be surprised how fast your money grows. At least think about sitting down with someone to hear about it.
Your barely keeping up with inflation. Over the past 40 yrs it's avg. 3.1%
Also, where are you getting these rate quotes? Just be careful because some banks offer out teaser rates to entice you then lower the rate when you sit down with the banker.
Your barely keeping up with inflation. Over the past 40 yrs it's avg. 3.1%
Also, where are you getting these rate quotes? Just be careful because some banks offer out teaser rates to entice you then lower the rate when you sit down with the banker.
參考: I'm a financial consultant.
Ibbotson Chart http://www.ibbotson.com/content/kc_published_research_search.asp?catalog=Article&category=Asset+Allocation&prodID=ARTC41620024
2006-04-14 9:06 am
Put your money in some kinds of stock, you can earn more than 5% within 6 months.
2006-04-14 2:36 am
Where are you banking? I have not seen anyone who would pay 5% for a $1000 deposit!
In your example several key differences exist between the two options. The savings account pays you 5% a year on your $1000 deposit. Your money in not tied up and could be withdrawn with a visit to your bank.
The CD pays 5% for the year, but your money is frozen for six months. In order for you to withdraw your funds four months after you deposited them, you'd have to pay a penalty.
In this scenario the savings account would be one hell of a deal. Like I said earlier, good luck finding one with those kinds of rates.
In your example several key differences exist between the two options. The savings account pays you 5% a year on your $1000 deposit. Your money in not tied up and could be withdrawn with a visit to your bank.
The CD pays 5% for the year, but your money is frozen for six months. In order for you to withdraw your funds four months after you deposited them, you'd have to pay a penalty.
In this scenario the savings account would be one hell of a deal. Like I said earlier, good luck finding one with those kinds of rates.
2006-04-14 2:33 am
The CD will earn 2.5% in 6 months. The savings account will earn 2.5% in that same 6 months. However if you need the money after 3 months you will have 1010.25 in your savings account, but penalties will take all your interest from your CD so you will only have 1000.
If the rate is the same, the savings account gives you better flexibility.
If the rate is the same, the savings account gives you better flexibility.
2006-04-14 2:32 am
You are correct it also depends on the shape of your finances. if you have an emergency account and a good amount in retirement accounts put it in a CD however if you have nether put it in the savings account
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