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Questions tagged [certificate-of-deposit]

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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What is the point of buying real estate when a GIC yields more?

Despite the fact that interest rates have risen over the past year and the housing market flatlining in Toronto and other Canadian cities, for whatever reason, people are still selling houses at ...
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44 views

Is a bank account or branch manager able to give higher interest rates on CDs to preferred clients? [duplicate]

Can an account manager or branch manager of your bank give you higher interest rates on savings or CDs (Certificates of Deposit) if you are a preferred client? For instance, if a long time client who ...
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1answer
91 views

when money market funds have comparable yields to CD maturity rates, is it obvious money market funds trump

(in light of added questions from others, my question is slightly edited) New to investment and only recently did I notice that in the US some money market funds generate 1.5-2.3% yields, which are ...
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2answers
145 views

Why would anyone go for the shortest term no-penalty CD with lower rate?

Consider below's no-penalty CDs offered by the same bank with the same rules. Why would anyone go for the shortest CD (7 months) if one can get a better rate getting the 13 month CD and close early ...
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3answers
633 views

Dad (mid 50s) wants me to help him invest ~500k?

My dad is in his mid 50s right now, and he has ~500,000 in his savings account. He has approximately 1 million in his 401k. He feels bad that he missed out on the rally of the past 9 years and wants ...
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3answers
107 views

Interest Payments on Certificates of Deposit

I'm curious how interest payments on certificates of deposits get paid out. Let's pretend you put $100 into a 5-year CD at 3% annual rate. Do you get: $3 every year $115.93 at once at the end of 5 ...
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3answers
115 views

Does an equivalent to stock “options” exist for CDs?

I was curious if an individual is able to purchase the option to get a CD at a particular rate in the future? Or alternatively defer the purchase of a CD and lock in the existing rate.
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175 views

Savings Account vs. CDs of less than 1 year. Which gives the better return?

I am thinking about purchasing some (short term) CDs once I have some extra savings. However, I'm not sure whether it is actually more profitable to purchase CDs or keep the money in my high-yield ...
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1answer
93 views

Are longer or shorter term CDs preferable while interest rates rise?

As of August in 2018, everything I'm reading is projecting rising interest rates for a while. Assuming that this is what happens, is it better to deposit money into a shorter-term CD (at a lower ...
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3answers
118 views

Prevalence of certificate of deposit ads and possible implications

I first learned about certificates of deposit (CDs) two months ago through a few posts on different stock boards on Yahoo Finance. Most of these posts went like this: "I'm pulling out some of my money ...
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1answer
157 views

When one bank's CD yields are one hundred times the market

I just learned about the "certificate of deposit" or CD. Looking at a comparison between the annual yields on these CDs across different banks, I was shocked to see that the yields on the CDs issued ...
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1answer
157 views

safe investment for elderly

I'm helping with choosing investments for an elderly person. They just want to park their money and not be in the market, so something relatively safe for somebody in their nineties. They aren't ...
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1answer
337 views

Do banks do a credit check when buying a CD?

I had my credit frozen about six month ago when one of the credit bureaus had a data breach (I forget which one it was). Will I need to unfreeze it before I can buy a CD with a bank, or do banks not ...
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2answers
126 views

Can you add money to a CD

Is it possible to add money to a CD like you would a money market or do you have to wait until the CD matures to make changes? I've found interest rates to be higher on CDs but not being able to add ...
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1answer
141 views

Why would a CD Rate be higher than a Corporate Bond rate?

In looking at my brokerage account for fixed income products, I was looking at both CDs and Corporate Bonds. I was surprised to see that the best 1-year CDs had a higher interest rate than any AAA or ...
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1answer
1k views

How does this example of fake certificate of deposit fraud work?

This article mentions a method of fraud that yielded $2,000,000 from fake certificates of deposit. That didn’t stop Beane from following the video’s advice and using fake accounts to create $30 ...
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2answers
283 views

What exactly is a time deposit?

I understand the function of a time deposit. You can make a deposit, and you cannot withdrawal (without a fine) for a set amount of time. Really what I'm confused upon is what types of accounts are ...
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1answer
215 views

What is the purpose of a short term CD that offers lower interest than a savings account?

I have noticed that some banks offer short term CDs with interest rates that are actually lower than that that the same bank pays on a savings account. For example Ally bank seems to offer a 0.30% ...
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5answers
3k views

What's the benefit of opening a Certificate of Deposit (CD) Account?

My credit union is holding a special offer for a 2.25% APY Certificate Account right now, and I was considering opening one at $500. I ran it against an online calculator, and I was surprised at how ...
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2answers
884 views

What's a good option for passive income for a college student?

I'm entering my senior year of college, and will have very minimal, if any, debt upon graduation. From self employment and internships I've saved up a decent amount of money over the past several ...
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2answers
161 views

How can a “5 year CD” have a Term of “120 Months”?

From a bank portfolio print-out, I see a CD listed: 5 Year CD Opened: 3/24/2015 Term: 120 Months Matures: 3/24/2025 What does it mean for a "5 Year CD" have a Term of "120 Months" and to mature ...
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1answer
468 views

$1.44 million in holdings: Help my non-retired, 80-year-old dad invest it [closed]

tl;dr   My 70'ish mother and 80-year-old, non-retired father have combined holdings of ~$1.44 million, haphazardly scattered over a number of instruments; help me help them design an ...
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7answers
5k views

Are Certificates of Deposit worth it compared to investing in the stock market?

Looking at roughly 0.05% for a CD to 5% for a stock portfolio. That's a huge difference in return. For example, with $10K, that's a 4.95 percentage point difference! In general, does a diverse ...
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0answers
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What are the tax implications of transfer fees while rolling over Roth IRA held in CD?

I have some money in a CD that's in a Roth IRA account. I'd like to transfer it out of that account and into another one, as part of a roll over. The CD is not at maturity, so I will need to pay a ...
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1answer
698 views

US Bank Won't Cash Old CD

I have an old (> 20 yrs) CD from a bank that was bought by a bank that was bought by US Bank. I went to US Bank to get it cashed, and they have no record of it, me, or my parents (we're all listed on ...
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2answers
510 views

How does the APY get applied on a CD that is less than one year?

I know that for interest rates you calculate the monthly rate by dividing by 12 (or similarly for any period by the number of periods/year). But if I have a 3 month CD that has a 0.4% APY, does that ...
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1answer
128 views

What do the terms of this CD mean?

My broker, Schwab, offers an FDIC-insured CD with CUSIP 38148J6B2. The CD matures on 1/21/2020, with a fixed semi-annual coupon rate of 1.950%. It is priced at par ($100) with an APY of 1.950%. Does ...
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4answers
196 views

How can I ensure that a CD sold by a brokerage is FDIC protected?

I was told by my broker that the amount of money I invest would be spread across multiple banks (which are FDIC insured) so that at each bank the amount would not exceed $250K. Is this how CDs offered ...
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3answers
6k views

Is there a CD that allows additional contributions?

I've made a budget for this year; after contributing the max to my IRA and 401K ($5,500 and $18,000, respectively, for 2015) I've realized that I have a lot of money that I'll be able to use. As such, ...
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1answer
133 views

How does CD early withdrawal fee work?

I am looking at one of the "internet banks" and they have CDs for 1 year at 1% and 5 years at 2%. The early withdrawal fee for 5 year CD is 150 days of interest. Doesn't it mean that 300 days the CD's ...
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1answer
195 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 ...
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1answer
202 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 ...
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1answer
396 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 ...
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1answer
145 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? ...
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1answer
373 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 (non-...
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2answers
141 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 common-...
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2answers
718 views

Formula to decide when to break a Certificate of Deposit (CD)?

I'm trying to create a certificate of deposit (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 ...
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1answer
1k 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 ...
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1answer
193 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 ...
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2answers
193 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 ...
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3answers
210 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 ...
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1answer
351 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" ...
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2answers
2k 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 ...
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3answers
183 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 ...
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2answers
3k 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: 3....
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1answer
9k 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 ...
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1answer
1k 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 ...
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4answers
290 views

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

What are the differences and/or trade-offs?
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5answers
5k 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?
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1answer
97 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.