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Tip of the Day Build a Nest Egg that is 25 Times the Annual Investment Income You Need

Build a Nest Egg that is 25 Times the Annual Investment Income You Need - When it comes time to retire are you going to have enough money to live...

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Certificate of Deposit (CD)

Definition: This is much like a bond from a bank because you give a bank money for a specified amount of time and they agree to pay you back at that time, plus interest.  The length of a CD usually varies from one month to five years.

TeenAnalyst Advice: If you have a lot of money in the bank, CD's allow you to put that money to work for you.  They're also nearly risk-free investments.  However, their interest rates vary with the current market interest rates.  At times, you may receive a very very low interest rate.

We recommend that if you' have a lot of money to consider investing it in another investment such as stocks and bonds instead.

 

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golden age cheese said:

I don’t think that Certificate of Deposit aren’t much of a profitable investments these days, as the interest rate for these investments are low compared to other similar investments which has even low investment risks. And I do wonder if anyone does invest in these anymore.

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Definition of the Day Financial industry regulatory Authority FINRA

Financial industry regulatory Authority FINRA - Is self-regulatory organization that was founded in 2007 by a merger between the National Association of Securities Dealers (NASD) and the New York Stock Exchange Regulation Incorporated. In which took on all responsibilities that were previously handled by the NASD. The company is responsible for...

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