Question
How to buy a certificate of deposit?
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1st Nov 2009 by Amelia Timbers
A certificate of deposit is like a savings account, but one that you don't withdraw from as a trade for a higher interest rate than a typical savings account. These accounts can generally be cashed with a penalty. Typical terms for c.d.s are six months, one or five years.
Like a savings account, C.D.s are available at banks and credit unions.
A less usual place to find C.D.s are with "deposit brokers". A deposit broker works with a bank to deliver a group of customers who want C.D.s. Banks then reward deposit brokers' higher volume with a higher interest rate, but deposit brokers may also charge the customer for the transaction. Deposit brokers are best if you are interested in investing significant capital in a C.D. instrument. Banks can ably handle normal transactions.
A certificate of deposit is like a savings account, but one that you don't withdraw from as a trade for a higher interest rate than a typical savings account. These accounts can generally be cashed with a penalty. Typical terms for c.d.s are six months, one or five years.
Like a savings account, C.D.s are available at banks and credit unions.
A less usual place to find C.D.s are with "deposit brokers". A deposit broker works with a bank to deliver a group of customers who want C.D.s. Banks then reward deposit brokers' higher volume with a higher interest rate, but deposit brokers may also charge the customer for the transaction. Deposit brokers are best if you are interested in investing significant capital in a C.D. instrument. Banks can ably handle normal transactions.
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1st Nov 2009 In Investing
1 Answers | 70 Views
Subjects: certificate of deposit,