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"Cd stands for certificate of deposit. You loan money to a bank and they repay the loan with interest. However, should you require your money before the time frame, then you will have to pay a penalty. The return on Cd's is usually better than money market accounts. So certainly it would be a good investment if you can afford it."
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∙ 12y ago
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Do money market accounts have a decent interest rate?
Money markets do tend to have a high yield interest rates that are very competitive with other ways of investing. The interest rate is usually higher than that of a savings account and equivalent to that of a CD.
What are the pros and cons of investing in high yield bonds?
The pros of having high yield bonds are that you can make a lot of money off of the interest if the company does well. The cons are that there is no way of predicting the outcome, and it takes a lot of money to start.
Which companies offer high interest saving rates?
Companies offering high interest saving rates include Nationwide, Aldermore, Scottish Widows Bank, BLME, UBL and Vanquis bank. High interest rates are usually available if one is willing to invest their money for a long period of time. One should remember that investing in long term interest rate bonds is not without risk so be sure of all requirements and risk before investing.
Why does it make sense for consumers to deposit their savings in a bank instead of keeping it home?
Banks pay interest on deposits - in return for investing their customers money in high risk returns.
How do interest rates affect investment?
When interest rates are high, investors will consider investing in short term investments, instead of long term investments. When interest rates are low, investors will consider investing in bonds because they are safer.
What are some ways in investing money?
Their are many ways of investing money to allow maximum growth. Money markets and Certificates of Deposit that yield high interest rates are very popular.
Is it better to spend your money investing or paying off your house?
This will depend on debt and interest rates. If the interest rate is low, investing may be a better option. If the rate is high, it may be better to pay it off.
Explain why both business investments and purchases of new homes decline when interest rates rise?
When interest rates are high, the cost of money is high. This makes purchasing a home or investing cost more.
Do money market accounts have a decent interest rate?
Money markets do tend to have a high yield interest rates that are very competitive with other ways of investing. The interest rate is usually higher than that of a savings account and equivalent to that of a CD.
What are the pros and cons of investing in high yield bonds?
The pros of having high yield bonds are that you can make a lot of money off of the interest if the company does well. The cons are that there is no way of predicting the outcome, and it takes a lot of money to start.
Which companies offer high interest saving rates?
Companies offering high interest saving rates include Nationwide, Aldermore, Scottish Widows Bank, BLME, UBL and Vanquis bank. High interest rates are usually available if one is willing to invest their money for a long period of time. One should remember that investing in long term interest rate bonds is not without risk so be sure of all requirements and risk before investing.
Do you want a high or low interest rate in a savings bond?
If you are investing in a savings bond, you wish for it to have a high rate of interest. If you are selling savings bonds, you wish it to be at a low rate of interest.
How do interest rates affect investment?
When interest rates are high, investors will consider investing in short term investments, instead of long term investments. When interest rates are low, investors will consider investing in bonds because they are safer.
Why does it make sense for consumers to deposit their savings in a bank instead of keeping it home?
Banks pay interest on deposits - in return for investing their customers money in high risk returns.
Where can I find out about a high interest CD?
There are no high CD interest rates in today's society. To get the best rates for investing in CDs, I would check some news articles or look into High-Yield CD rates.
I would like to find an bank savings account with a high interest rate. Any ideas?
Cerificate of Deposit accounts are likely your best bet for high interest. However, these accounts do place deposit requirements, and restrict when you can withdraw your money without penalty, so think carefully before investing.
How does a fall in the real interest rate affect consumption decisions?
The interest rate is basically the price of money. The main concept behind the interest rate when thinking about consumption decisions is opportunity cost. In terms of the household, if the interest rate is high the opportunity cost of consumption is high because the rate of return for investing is high. Prospectively, the household could have much more purchasing power if the household would invest rather than consume. If there is a higher interest rate consumption will probably go down as more people will invest more because the returns to investment will be higher. It will depend on if the household values consumption now more than consumption later, if the goods and services they need at the present is worth more than how much they will receive in the future through investment. If the interest rate is low the opportunity cost of consumption is low because the rate of return for investing is low. There will be very little value lost to consumption now because the household will get very little from investing when there is a low interest rate.
