for questions that relate to the certificate of deposits(CD). A CD is a time deposit, a financial product commonly offered to consumers in the United States.

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2
votes
1answer
47 views

What is the numerical relationship between an APY and an inflation rate?

I’m thinking of starting a CD ladder. The rates for CDs are expressed as an annual percentage yield (APY), while the inflation rate is expressed as a percentage per year. How do you convert between ...
3
votes
1answer
118 views

I want a long term savings account for my daughter. How should I proceed?

I have researched some into Certificate of deposit and was wondering if this is a good approach. From this site http://www.bankrate.com/cd.aspx with the following criteria of Ca, Los Angeles and 5 ...
1
vote
1answer
72 views

Would a mortgage lender consider our savings in CDs to be as good as cash?

We are considering placing a chunk of our savings into a long-term CD with a very low early-withdrawal penalty. After looking at a number of different scenarios, we have decided this is the best ...
2
votes
0answers
72 views

How to distribute additional deposits in my CD ladder?

Assume one has a CD ladder with 5 certificates -the longest CD matures in 5 years, the shortest in 1- each with a $2000 initial deposit. Should additional deposits be evenly distributed amongst them? ...
7
votes
1answer
95 views

Savings Account Rates vs. CD Rates vs IRA CD Rates

I have an IRA at Fidelity, and was looking into rates I could get for new issue CDs. I found that the best rate offered for a 1 year CD was 0.3%. I was surprised by this, as I currently have a ...
4
votes
2answers
91 views

Automating Certificate-of-Deposit purchases into a ladder-like scheme

In follow-up to these two questions, how could I automate purchasing CDs on a routine basis (say every month) in the US? Would it be specific to a given financial institution, or is this a ...
1
vote
1answer
234 views

Formula to decide when to break a CD?

I'm trying to create a CD comparison tool and have been working on a formula to compare a CD with a higher interest rate to a CD I might own with a penalty period. I believe the basic formula idea: ...
3
votes
1answer
146 views

How are days counted when funding a new account within 10 days

I just opened a new CD today and it told me I have 10 days to fund the account. I think the specific wording said "within 10 days." I'd like to know how these days are counted as I am unsure if any of ...
3
votes
1answer
108 views

Better rate for investment between CD or savings

I have been considering either renewing my CD (Certificate of Deposit) from my local Credit Union which is at 1.35% APR (1.3591 %) dividend rate (monthly compounded) for one year. I recently noticed ...
4
votes
2answers
138 views

Accidentally opened a year term CD account, then realized I need the money sooner. What to do?

I opened a year term CD account two business days ago and just found out that I would need that money this year. I searched around the web and it looks like there is a federal law saying that a bank ...
5
votes
3answers
168 views

IRA contributions in a bear (bad) market: Should I build up cash savings instead?

I have a retirement account (not a 401k with a match, just an individual retirement account) and over the last few years have gotten statement after statement of losses on the value of my retirement ...
4
votes
1answer
129 views

Taxation difference between income from credit union (CU) shares versus bank deposits (e.g. CDs)?

This question is a follow-up to Difference between a (credit union) "share certificate" and a (bank) CD? What is the difference in taxation on "interest" payments versus "dividend" ...
14
votes
2answers
1k views

What is the best way to invest short term without losing principal?

My wife and I were planning to buy a house this year, but the plan fell through, so right now we are sitting on the money that we saved towards down payment and renovations (prior to now money was in ...
4
votes
3answers
117 views

Which bank(s) allow you to open AND close CDs online?

Most banks allow you to transfer money into a Certificate of Deposit (CD) using their website. However, once you open a CD you usually have to call to close or otherwise modify the CD account when it ...
3
votes
2answers
344 views

Understanding details for certificate of deposit: Explain the features of this CD?

Came across a "HARRIS N.A. IL" CD today (you can find the details here), and I'm strugging to understand the details. Here's what's listed: CUSIP: DSA991209 Pay Frequency: SEMIANNUAL Coupon: ...
6
votes
1answer
2k views

Difference between a (credit union) “share certificate” and a (bank) CD?

I've seen both Share Certificates and Certificates of Deposit available. Are they the same thing? Do they have different names based on whether they are offered at a bank or credit union? Does one ...
2
votes
1answer
600 views

What are advantages of certificate of deposits compared to a deposit account?

As far as I know when someone wants to deposit money in a bank he can choose between a deposit account and a certificate of deposit. With a deposit account a person is assigned an account bound to his ...
5
votes
4answers
167 views

Should I save in a CD or in an online savings account?

What are the differences and/or trade-offs?
12
votes
4answers
1k views

What is CD laddering and what are its pros and cons?

I've seen the term "CD Laddering". What is this and what are the benefits and risks of doing it?
2
votes
1answer
68 views

Where can I find the latest and best US CD rates online?

Where can I find the latest and best US CD rates online? I'm looking for a clean site that provides updated rates, and can also notify me when CD rates change.
6
votes
4answers
879 views

Investing in foreign CDs, is it worth the risk?

I heard Clark Howard talking about foreign currency CDs, and so I looked and indeed their interest rates are much higher than US rates right now (3.75% for a year in Australia). What risks are ...
8
votes
1answer
89 views

Looking for RSS feed of Certificate of Deposit rates

One of the things I like to do is have Certificates of Deposits (CD). I was able to get a 1% rate at US bank some time ago with a 1-month rollover. However, CD rates are constantly shifting, meaning ...