Jul
14
If I open up a CD with $10,000 for 4 months and the rate APY is 4.9% how much will I have at the end of the 4
July 14th, 2010 posted by
admin
I am new to this and just got a bonus that i would like to do something else with other than just leave it in a savings. Can someone explain the benefits of a CD and the answer to the question I posted in the title??? thanks!!!
Jonathan L says:
July 15th, 2010 at 2:32 pm
This depends on the CD , go to 2-3 banks and get quotes.
newjerseyguy says:
July 18th, 2010 at 5:36 am
You would gain roughly $165 in interest for four months.
mplsundin says:
July 21st, 2010 at 2:50 pm
The second poster has given an adequate answer on the interest you’ll earn. To answer your question as to the benefits of a CD, you will get a higher interest rate compared to your savings account because you’re agreeing to lock in the funds for a specified period of time (obviously the longer you agree to leave the funds alone, the larger the interest rate they will offer). CD’s also have an additional benefit because they require a minimum dollar amount that is generally quite higher than the minimum dollar amount on your savings account (again you’re probably getting a better rate by depositing $10,000 as opposed to just $1,000). Most CD’s compound quarterly compared to savings accounts which generally compound every month. A CD is a good investment to make when you want to take on next to nothing in risk, yet you’d like to earn some interest on the money.
mister ed says:
July 22nd, 2010 at 12:48 am
roughly 165 — would be a good time to start a rainy fund if you do not have instead of one cd ladder the 10k and have one come (2500) in four months and one each mont there after for 4 months when they come do if you do not need the money just roll it over!!!e mail me if i have lost your!!!