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 BIGROM
Ball don't lie!
 
Registered: 01/23/07
Posts: 101
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 is a CD a good idea?
#8673750 - 07/23/08 09:17 PM (4 months, 10 days ago) |
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I was wondering about investing some money and checked out my banks CD terms. I'm a little confused, for the five year CD it had a annual yield of 3.50% so does that mean if i invest $1,000 at the end of five years I'll have a return of $17,500? Also are they a good idea in general?
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No statements made in any post or message by myself should be construed to mean that I am now, or have ever been, participating in or considering participation in any activities in violation of any local, state, or federal laws. All posts are works of fiction.
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 Shins
funguy
Registered: 09/15/04
Posts: 439
Last seen: 14 days, 15 hours
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 Re: is a CD a good idea? [Re: BIGROM]
#8673797 - 07/23/08 09:28 PM (4 months, 10 days ago) |
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i think it means your money is locked in for 5 years.
considering inflation is higher than 3.5%, if it stays the same you will lose money (value).
better than keeping cash or a chequing account though i guess.
2 cents
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I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered.
-Thomas Jefferson (1743-1826)
The refusal of King George III to allow the colonies to operate an honest money system, which freed the ordinary man from the clutches of the money manipulators was probably the prime cause of the REVOLUTION.
-Benjamin Franklin
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AroundtheSon
Mr. President
Registered: 01/11/07
Posts: 2,226
Loc: Midwest.
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Re: is a CD a good idea? [Re: BIGROM]
#8673829 - 07/23/08 09:36 PM (4 months, 10 days ago) |
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your math is wrong.
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DieCommie
Ally
Registered: 12/11/03
Posts: 7,653
Loc: The Union
Last seen: 7 hours, 10 minutes
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Re: is a CD a good idea? [Re: BIGROM]
#8673834 - 07/23/08 09:38 PM (4 months, 10 days ago) |
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Quote:
BIGROM said: I'm a little confused, for the five year CD it had a annual yield of 3.50% so does that mean if i invest $1,000 at the end of five years I'll have a return of $17,500?
Absolutely not. It means you will have about $1188 at the end of five years.
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Behold yon miserable creature. That Point is a Being like ourselves, but confined to the non-dimensional Gulf. He is himself his own World, his own Universe; of any other than himself he can form no conception; he knows not Length, nor Breadth, nor Height, for he has had no experience of them; he has no cognizance even of the number Two; nor has he a thought of Plurality; for he is himself his One and All, being really Nothing. Yet mark his perfect self-contentment, and hence learn his lesson, that to be self-contented is to be vile and ignorant, and that to aspire is better than to be blindly and impotently happy.
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AroundtheSon
Mr. President
Registered: 01/11/07
Posts: 2,226
Loc: Midwest.
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Re: is a CD a good idea? [Re: DieCommie]
#8673845 - 07/23/08 09:39 PM (4 months, 10 days ago) |
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which is why it's a poor "investment".
You can usually get 6 month ones for about the same interest rate. I think I seen a introductory for Wachovia at 3.7% recently.
they are great for saving, but poor for investing. Unless of course you like really low risk ventures.
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AroundtheSon
Mr. President
Registered: 01/11/07
Posts: 2,226
Loc: Midwest.
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Also, make sure you have a good bundle saved in "liquid" cash before locking up your money in a CD. Some say you should have a month or two of pay saved up - just in case you were to lose your job or something came up (e.g., hospital, etc.)
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BIGROM
Ball don't lie!
Registered: 01/23/07
Posts: 101
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any good investments out there,can i invest in oil speculating...jk
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No statements made in any post or message by myself should be construed to mean that I am now, or have ever been, participating in or considering participation in any activities in violation of any local, state, or federal laws. All posts are works of fiction.
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AroundtheSon
Mr. President
Registered: 01/11/07
Posts: 2,226
Loc: Midwest.
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Re: is a CD a good idea? [Re: BIGROM]
#8673901 - 07/23/08 09:50 PM (4 months, 10 days ago) |
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bro, nothing wrong with a cd. If your saving for something, CD's are nice. For instance, saving for a house, let's say you have 20,000 dollars saved up. 3.75% - 4% is good money on 20,000 for just letting them borrow it.
I just didn't want you thinking you would get rich saving in Cd's. But, if you have the money coming in, and nothing to do with it but save, by all fucking means, buy some Cd's.
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BIGROM
Ball don't lie!
Registered: 01/23/07
Posts: 101
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cool thanks for the knowledge
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No statements made in any post or message by myself should be construed to mean that I am now, or have ever been, participating in or considering participation in any activities in violation of any local, state, or federal laws. All posts are works of fiction.
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KillerPicklez
Garden Hands
Registered: 12/13/07
Posts: 4,062
Loc: Arizona
Last seen: 16 minutes, 45 seconds
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Re: is a CD a good idea? [Re: BIGROM]
#8676942 - 07/24/08 04:02 PM (4 months, 9 days ago) |
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The rate isnt as high as the current inflation rate but it is still better than having your money stuffed under the mattress gaining no value or in a normal checking/ savings account.
You do need to get a CD where you are going to get a better rate than 3.5% on 5 years.
US Bank rates as of today
3.15 on 13 months
3.90 on 25 months
4.70 on 45 months
5.00 on 59 months
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Veritas
Registered: 04/15/05
Posts: 10,379
Loc: PNW
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WAMU is offering 4.25% on an 8-month online CD. I'm in! 
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No man is free who is not master of himself.
~Epictetus.
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pothead_bob
Registered: 04/12/08
Posts: 438
Loc: Northeast US
Last seen: 3 days, 11 hours
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Re: is a CD a good idea? [Re: BIGROM]
#8687459 - 07/27/08 08:00 AM (4 months, 7 days ago) |
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If you don't want to lock your money away, consider online savings accounts. I have one with Etrade that I get 3.3% APR on. It's still less than inflation, but it's about the same as the CD you're looking into. Plus, you can remove your money any time you want.
So, if inflation starts going apeshit, like it has been, I could move my money into the stock market or commodities at the drop of a hat instead of having to wait 5 years to touch it.
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"It's called the American Dream because you have to be asleep to believe it" - George Carlin
"Prohibition will work great injury to the cause of temperance. It is a species of intemperance within itself, for it goes beyond the bounds of reason in that it attempts to control a man's appetite by legislation, and makes a crime out of things that are not crimes. A Prohibition law strikes a blow at the very principles upon which our government was founded." - Abraham Lincoln
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MapleLeafs
Stranger
Registered: 07/27/08
Posts: 67
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17k , thats way off 
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