Investing Money Guides
Many people fail to distinguish money market mutual funds from money market accounts, but there are differences in terms of choices and risks involved.
Money market funds provide various benefits to their investors, but before putting your money in a money market fund it is better to examine them thoroughly.
If you think that investing in CDs would be a very appropriate investment option for your financial situation, then it may be even better to consider investing in CD laddering.
You can purchase a CD not only from a bank, but also from a financial intermediary. Such a CD is usually referred to as brokered CD.
The CD market has become more diversified by the introduction of CDs that present a certain degree of flexibility. One of the CDs that allow for greater flexibility is the bump-up CD.
Liquid CDs allow investors to take their money away earlier without incurring early withdrawal CD penalties.
Certificates of deposits (CD) provide investors with many advantages in terms of low risk levels. However, they have their disadvantages, which are the topic of this article.
A CD is one of the safest investments and at the same time it pays higher interest than savings accounts. However, CDs have one disadvantage. Namely, early withdrawal is subject to penalties.
CDs have maturity, which is the time when their terms expire. When the CD maturity date is reached the bank can stop paying the pre-agreed interest and you can take the money you have invested.
CDs are investment vehicles that are characterized as low risk and low interest. However, the CD interest rate is higher than that of savings accounts; therefore many people use a CD as a type of a savings vehicle.
Certificates of Deposit, represent a kind of investment that has low level of risk and low returns (yet, higher than savings accounts) as well.