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Forum
-> Household Management
-> Finances
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amother
OP
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 Wed, Dec 30 2020, 9:58 pm
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My dd has been earning a decent salary and wants to put money into CD's. Anyone here have money in CD's that can help me figure out which bank to go to?
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Shazam
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Wed, Dec 30 2020, 10:06 pm
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Online banks usually have good interest rates. Google some to see who has the best rates now.
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amother
Orange
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Mon, Mar 15 2021, 2:55 pm
You need to understand that in order to stabilize the economy, the Fed has cut the interest rate. So for example, my high yield savings account with Capital One, which had one of the highest interest rates in the country, fell from 2% to it's current .40% in the past year.
Similarly the CDs. If you agree to lock your money up with them for 5 years, you can earn .40% (A year is .20%) interest but, as you can see above, that's the same interest rate as your regular savings account. These rates are significantly higher than your standard brick and mortar bank where I'm earning .01% on my savings account.
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Amarante
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Mon, Mar 15 2021, 5:33 pm
You put money into a CD or savings account in order to have a safe relatively liquid asset. You do not worry about interest rates because interest rates are so low all over that the amount is irrelevant to most people.
One of the reasons stocks are doing well is that there is literally no other place for people to put their money in.
Once she has accumulated six months of savings in a CD or other liquid account, she can explore relatively safe ways that will provide a greater return on her investment.
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amother
Cerise
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Mon, Mar 15 2021, 6:50 pm
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In today’s financial climate cds are not the best place to grow your assets
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agreer
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Mon, Mar 15 2021, 6:54 pm
| amother [ Cerise ] wrote: | | In today’s financial climate cds are not the best place to grow your assets |
Agreed. Interest rates are so low.
Given her age, have her invest in a mutual fund and start an IRA.
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amother
Powderblue
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Mon, Mar 15 2021, 7:01 pm
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She should open an account with vanguard and start her Roth IRA. CDs are worthless these days.
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