0
What are the advantages and disadvantages of a certificate of deposit?
Wiki User
∙ 7y ago
One disadvantage of a Certificate of Deposit is that the money is there, but the customer cannot use it. If the money is drawn out earlier than the due date, monetary penalties will be assessed and the customer will actually lose money.
Wiki User
∙ 9y ago
Wiki User
∙ 14y agoBecause your money is invested for a set period of time, the bank offers you a higher interest rate than a normal savings account. It's FDIC insured. Also, by using a technique called "CD Laddering" you can really maximize the interest rates and increase liquidity.
http://www.ehow.com/how_5416449_make-money-certificate-deposit-laddering.html
Wiki User
∙ 7y agoCertificates of deposit are a good idea because they are a high interest deposit and offer a higher interest rate than a savings account and treasury bills and notes.
Add your answer:
Earn +20 pts
What the the advantages and disadvantages of a certificate of deposit?
Certificates of deposit are a good idea because they are a high interest deposit and offer a higher interest rate than a savings account and treasury bills and notes.
What is the disadvantages of fixed deposit?
what is the disadvantages of fixed deposit
What is a IRA Certificate?
What is IRA certificate of Deposit? In such certificate of deposit, investor can own Roth IRAs or traditional IRAs together with CD inside their accounts. The terms and conditions of such certificate of deposit are same as a regular certificate of deposit. The only difference is that the fund is contained within IRA account. There are brokerage firms who help retiree to fix the terms of their IRA account, so that they can direct the investment funds to various risk and risk free domains to attain the best possible benefit. One can own certificate of deposit within the self-directed IRA account. Enhanced advantages of tax are involved within the certificate of deposit owned within the IRA account.
What is the plural of certificate of deposit?
Certificates of deposit.
Can Owner of deposit certificate sell it?
No. A Deposit Certificate cannot be sold. It can only be cashed by the person who took the deposit certificate so buying it would be a bad idea because if anyone else tries to cash the deposit certificate, the bank will not pay them.
How would you use a certificate of deposit?
well first you would start the start the deposit of your certificate. I would recomend waiting so your Certificate of deposit can mature with growth. Be sure to add the exact intrest rate of your certificate and be sure to use a calculator to determine your amount of the certificate deposit
What are the dimensions of a safe deposit box?
certificate of deposit
advantages and disadvantages of equity?
Advantages and Disadvantages of equity
What are advantages and disadvantages of artificial seasoning of timber?
advantages and disadvantages
What is a bank CD?
A CD refers to a Certificate of Deposit. It is a certificate given to you by a bank for depositing cash with them. They would pay you an interest for having the deposit with them.
What are Advantages and disadvantages of recession?
advantages and disadvantages of recession
What are the advantages and disadvantages of antipyretic?
what are the disadvantages and advantages of antipyretic
