Certificates of Deposit (CDs) - TravelPUNK Backpacker College Student Budget Travel Message Boards!

**blinkchick2134** · 01-02-2006, 07:14 PM

I just noticed this forum was up and running, hehe.

I've been hearing a lot about CDs lately and I was wondering if anyone had some info on them. I get the just of the process but I'm not quit sure if I'd want to go through it. Any advice fellow Batcavers?! *insert theme music*

**kingcrazylegs** · 01-02-2006, 09:21 PM

You can basicly think of a CD as a savings account - though with better interest rates (usually) that are fixed for the time period you choose, however if you take the money out before maturaty you usually loose money. I've had CDs a couple times, and they worked well for me at the time.

**Sijuki** · 01-02-2006, 10:07 PM

I always figured the ulitmate goal with CD's is to start with 3 month CD's... save your money, open 1, then save again and open a 2nd, and then a 3rd so you have money coming in every month, if you need it. Then repreat the process and just change to 6 month cd's and so on a so forth. An easy method to get your money to work for you without taking a risk of needing it. I have not kept up on CD rates lately... but I believe they are getting back around 4% or so. Which is similar to some money market accounts....

so depending on your options I would definitely check with your bank or a few others to see which would work out best as some MMA's (Money Market Accounts) will allow you check writing access and easy withdrawls. Although your balance is usually tied into the interest rate you receive.

**bluepea** · 01-03-2006, 09:12 AM

I invested in a CD before we went to Europe, just so I couldn't touch the money, plus I'd gain a little extra. It was a short term (3 months?) so I didn't gain much interest, but the money was safe. It's a simple process really. Just go talk to a banker.

**travelpunk** · 01-05-2006, 04:48 AM

Can't help ya here, Amber. Sorry

I need bigger returns

!

**llemus7** · 01-09-2006, 04:07 PM

I would not go for a CD because it ties your money up. I would recommend a mutual fund better and have it in a Growth and Income fund or an Income fund.

they are more conservative and will give you a higher rate of return than a money market account.

take a look at these funds what the rate of return was these last couple of years.

SOPAX
ACEIX
ANCFX

these are the ticker symbol. type those individually into this website www.morningstar.com and see how great they perform.