This may sound dumb,but if a cd has a rate of 2% for 6 months, is that 2% every month or 2% for the whole time

Question

This may sound dumb,but if a cd has a rate of 2% for 6 months, is that 2% every month or 2% for the whole time

Answer 1

it is for the 6 months

you could do better then that rate to shop around maybe able to get a 3 year at 3.75%

Answer 2

it is PROBABLY 2% for 1 yr, with the

lock required on the money for only

6 mo.

[25 yrs ago, a CD offered 15% per yr.

Banks today are taking depositors to the

cleaners!]

Answer 3

it probably means 2 % annually so during 6 months you will earn 1 %

Answer 4

Rates are always stated per annum, so that will be 2% p.a.. If the CD is $1,000, 2%p.a. will give you an interest of $1,000 x 2% = $20, but since it's only for 6 mths, the interest you'll actually receive will be $20 x 6/12 = $10.

Answer 5

2 percent for the annual percentage yield (apy) I am assuming is what you mean.. The 2 percent.. you will get for the whole 6 months.. not every month. I think I might find a better rate if I were you..