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Certificate of Deposits

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Posts: 6

ThrowbackSample

Rookie

Joined: Jan, 2006

Posts: 569

Posted: Mar. 9, 2008 - 3:49 PM ET #1

I am a young investor still in college, and I was wondering the advantages of opening a CD?. I want to do it just to get my feet wet in investing and earn a little money while doing it. Would this be a good idea??

wallstreetcappers

Covers Linesmen

Joined: Feb, 2003

Posts: 58464

Posted: Mar. 9, 2008 - 4:06 PM ET #2

At your age, no way.

The interest rate difference between a CD and a money market make it a bad decision to LOCK up the money for a long period of time just to gain a little rate wise.

Keep the money liquid and put it in a regular money market..locally or online.

ThrowbackSample

Rookie

Joined: Jan, 2006

Posts: 569

Posted: Mar. 9, 2008 - 6:44 PM ET #3

What about a good example of a money market fund to put it in? What online service is good?

ThrowbackSample

Rookie

Joined: Jan, 2006

Posts: 569

Posted: Mar. 9, 2008 - 6:44 PM ET #4

What about a good example of a money market fund to put it in? What online service is good?

KOAJ

Covers Linesmen

Joined: Oct, 2005

Posts: 66698

Posted: Mar. 10, 2008 - 10:21 AM ET #5

ingdirect.com

emigrantdirect.com

3.5% approx

paypal is close to the same

jasonwhitesknee

Captain

Joined: Sep, 2004

Posts: 9425

Posted: Mar. 11, 2008 - 9:27 PM ET #6

CD rates suck right now. Annual taxes on gains (no compound interest). Not one of my favorite investments.

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