Is a CD a good investment?

Question

I want to invest some money and wondering if a 9 month CD was is a good idea at 3.44% and if so how much

Answer 1

CD's are safe investments, meaning they are low risk .However, they are long-term and have lower interest rates. Depending on what you want, it may or may not be a "good" investment. for you.

Answer 2

First of all I agree with most responses here posted and personally believe that if you are new to the idea of investing and looking to enter you must start extremely conservative! There are various avenues you may persue thats doinging very well for most who decided to step into fix-income or defensive portfolios (alternative Ideas). Your money can be liquid along with a comfortable gain. ALong with being FDIC insured!!!I was just offered on this last friday for 11% I could point you in the right direction should you feel so compelled to learn more!!! [e-mail]

Answer 3

It's not a bad investment. It mainly depends on what your goals and risks are. CDs are generally a safe investment, but their payout can be less than other forms of investment.

If we're talking CDs vs. just keeping it in savings, then go with the CD. Otherwise, consider stocks, mutual funds, and bonds. Actually, bonds can be fairly safe as well, especially municipal bonds, and will almost certainly pay more than 3.44%. What you can do depends mainly on how much money you have to invest.

Additionally, why 9 months? If you're looking to invest long term, there are CDs for five years or longer that you can find. These will likely have a higher interest rate.

The amount you should invest? That just depends on how much you have. The more the better, but make sure you leave enough to get by on in case of emergency or other unexpected event. There's nothing worse than needing it and having it tied up somewhere.

Check out schwab.com, I manage all of my investments through them - there fee structure is in my opinion the best in the online industry. Very reasonable, and there's no inactivity fees - meaning you can make your investments and forget about them until you're ready to withdraw.

Also, Schwab has plenty of research available to you, as well as great FAQs once you're signed up for an account. They also offer counseling from people who do this for a living - all for free.

Answer 4

As a result of the current economic situtation in the world.

YES, CD would be a great investment. Risk Free investment.

You wouldn't find a better investment.