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NoSoup · 07-11-2005, 09:29 PM

The interest rates will compound usually at a faster rate than annually - usually quarterly or monthly, depending on the product.

The reason people invest in them is because they are still fairly liquid, extraordinarily low risk, and often are used in "CD Ladders" - like Cynthetiq had mentioned.

Remember, as long as the FDIC or NCUA insures the institution you are working with, your money is guarenteed. Also, rates right now on CD's are near historic lows. They are better than they were a couple of years ago, but I have some 10 Year CD's that are at 23% Interest for the next year or so... Granted, I purchased them a long while back, but the market will return at some point.

Right now is an excellent time to borrow money, and unfortunately a poor time to have it as far as rates go....

07-11-2005, 09:29 PM	#3 (permalink)
NoSoup Non-Rookie Location: Green Bay, WI	The interest rates will compound usually at a faster rate than annually - usually quarterly or monthly, depending on the product. The reason people invest in them is because they are still fairly liquid, extraordinarily low risk, and often are used in "CD Ladders" - like Cynthetiq had mentioned. Remember, as long as the FDIC or NCUA insures the institution you are working with, your money is guarenteed. Also, rates right now on CD's are near historic lows. They are better than they were a couple of years ago, but I have some 10 Year CD's that are at 23% Interest for the next year or so... Granted, I purchased them a long while back, but the market will return at some point. Right now is an excellent time to borrow money, and unfortunately a poor time to have it as far as rates go.... __________________ I have an aura of reliability and good judgement. Just in case you were wondering...