answersLogoWhite

0


Best Answer

A certificate of deposit (CD) pays a specified rate of interest over a specified period of time and your return is quantifiable from day one. The return on stocks and bonds will vary over time depending on market and economic factors and interest rate changes thus making it impossible to predict exact future returns. The benefit of a CD is that they are usually insured by the Federal Deposit Insurance Corporation and there is no risk of loss. The drawback of a CD is that your return is capped. Stocks and bonds, although subject to market risk, typically deliver returns in excess of a CD.

User Avatar

Wiki User

9y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What is the differences of certificate of deposit and stocks and bond?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What is the difference between a time deposit and a certificate of deposit?

A time deposit (also known as a term deposit, particularly in Canada, Australia and New Zealand; a bond in the United Kingdom) is a money deposit at a banking institution that cannot be withdrawn for a certain "term" or period of time. When the term is over it can be withdrawn or it can be held for another term. Generally speaking, the longer the term the better the yield on the money. A certificate of deposit is a time-deposit product. A Certificate of Deposit (CD) can be traded, while a time deposit cant be traded because it is linked to a bank account.


What is an insurance bond certificate?

What is an insurance bond certificate?


Is it safe to deposit Multiple Bond Recurring Deposit in Sahara Housing Bond?

sahara housing bond is a froud scheme


Where can someone find more information about a time deposit?

In the banking world, the term Time Deposit refers to a savings account or certificate of deposit that pays a fixed interest rate for a given period of time. In the United States, a time deposit is commonly referred to as a certificate of deposit, as a term deposit in Canada, Australia and New Zealand, a bond in England and a fixed deposit in India. One can find terms and interest rates at their local bank, or on internet comparison sites such as Bank Rate or Rate Brain.


What are the basic state laws in order to have insurance for a motorbike?

There is always a mandatory insurance. There is an auto insurance policy, there is self insurance, there is a certificate of deposit, and there is a liability bond.


What is a negotiated certificate of deposit called in the UK?

I was just poking around trying to answer this question myself, and I'm not sure but it looks like "high interest deposit bond" might be the UK equivalent of what would be called "CD" or "certificate of deposit" in the US. I found that HSBC offers these, according to the following information from their Web site: "If you have £2,000 or more to lock away, we offer a choice of fixed terms from 6 months to three years, and you'll benefit from a fixed interest rate."


What is a certificate of indebtedness by a corporation to a holder?

bond


What is a certificate of indebtedness by a corporation to the holder?

bond


What is a certificate of debt issued by corporations and governments?

Bond


How do you caim your birth bond?

You can claim your birth bond by presenting your birth certificate or your birth notification.


How do you make a sentence using bond?

A mother and child have a special bond. What type of glue will bond wood and plastic? There's a government bond in the safety deposit box.


Is there a clear difference between a very polar covalent bond and an ionic bond explain?

Electronegativity differences of <0.5 indicates a nonpolar covalent bond. Electronegativity differences between 0.5 and 1.6 indicate a polar covalent bond. Electronegativity differences >2.0 indicates an ionic bond. For electronegativity differences between 1.6 and 2.0, if the bond involves a metal, it is considered to be ionic. If the bond is between two nonmetals, the bond is considered to be polar covalent. Refer to the related link below for more information.