Certificates of deposit ( CDs ) is a form of fixed income investments. CDs are similar to passbook savings accounts but the investors cannot cash in the CDs prior the expiration date without a penalty. This is why the rates on Certificates of Deposits are higher than those on passbook savings.
When investors use CDs as Invest Tool?
Investors usually invest in CDs when investors don't need the money for a certain period of time. It's because if investors cash in the certificate of deposits before the time, they will have to pay the penalty. So please consider whether you need the money or not before investing in CDs.
What is CDs rate?
Different banks usually offer different CDs rates, The rate usually depends on the risk and the currency. So how to know the CDs rates ? you can get the information rates on bank websites and on newspaper at financial section.
Are you interested to invest in certificates of deposits? please consider the CDs rates, the CDs expiration date, and bank's credibility before using certificates of deposites as one of your Invest Tool?
Friday, March 28, 2008
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2 komentar:
Although the rates are low but we need CDs for diversification reason.
for CDs, banks usually have a minimum balance.
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