Question:

Purchasing a CD from bank?

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How much does a CD usually cost? I was thinking of buying one myself but was not sure of the price of one. I know you have to not break it for a couple years or so. Would $100 buy one or would I have to have more money?

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  1. The terms vary between CD to CD.  Really, right now with the interest rates it's not really worth it.  Some online banks are offering savings rates that exceed what CDs are offering.  I have a bunch of money in a 3.5% account at Capital One.  The best thing is that I can pull it out at any time with no penalty.


  2. Call your local banks and ask.  Usually there will be a place you can get one for $500.

    If $100 represents all of your savings, it might be better to keep it liquid in case you have an emergency.  If you do get a CD, keep it short-term, such as 6 months.

  3. CD cost you nothing. They instead pay you (very little it barely matters). Most start at around $1000, but I'm sure there's some as little as $100.

  4. Check with your particular bank and see what they offer. Usually, the longer you plan to leave your money in the CD, the greater the interest rate they pay.

    For example, I just checked with my credit union, and they are currently offering various specials ranging from a 5-month certificate, minimum $500, that pays 3.00 percent APY, to a 15-month certificate, minimum $500, that pays 4.00 percent. At the end of the term, you can withdraw the money or roll it over into a new CD at whatever the current rates may be.

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