| Some CD account questions... |
|
|
|
|
|
RalphieZ
First Time Poster
Cash: $ 0.25
Posts: 1
Joined: 10 May 2011
|
| Some CD account questions... |
 |
|
Hi,
I've been looking for a good way to invest a small amount of money in a relatively safe way. I've been looking at savings accounts, money market, and CDs. Is there a better way to invest a small amount of money?
I went to Ally bank and found out that their savings and MMA have the same APY of 1.00, so I would really like it if someone explained the difference between their two accounts to me (I know that MMAs are investments in bonds and securities).
But since I don't mind not being able to access my money for a long time, I've also been looking at CDs. Question: do banks limit the number of CDs that one person can open? What if I wanted to open a new one every day? Another question: would there be a significant difference in yield between having one large CD and having 100 small CDs of the same initial deposit amount? For example, if I had $100, and put $1 in 100 CDs would I get much less than if I put the whole amount into a single CD at $100 initial deposit?
Thanks!
|
Wed May 11, 2011 12:12 am |
|
|
oldguy
Senior Member
Cash: $ 309.10
Posts: 1480
Joined: 21 May 2006
Location: arizona
|
|
|
|
quote:
do banks limit the number of CDs that one person can open? What if I wanted to open a new one every day? Another question: would there be a significant difference in yield between having one large CD and having 100 small CDs of the same initial deposit amount? For example, if I had $100, and put $1 in 100 CDs would I get much less than if I put the whole amount into a single CD at $100 initial deposit?
CDs have a minimum, some start at $100. But the bigger ones and the longer ones pay a higher rate - eg, a $100 1-yr CD will be at a lower rate than a $100,000 5-yr CD.
All of the products that you have listed are income producing, they are not designed to build wealth, only to protect your principal and to offset inflation. So they must all pay approximately the same - currently it is 1% to 2%.
Investments, OTOH, are designed to produce wealth, they pay 6% to 12%/yr so they substantially outpace inflation (thereby building wealth). The two wealth building assets are stocks and real estate. They appreciate on the open market and they fluctuate based on supply and demand. They are for long tem investing - 20 or 30 years - so that there is time for averaging of th eups/downs. They should not be used for periods of less than 5 yrs, you cannot predict the shortterm outcomes.
|
|
Wed May 11, 2011 1:28 am |
|
|
Ba11le
New Member
Cash: $ 2.00
Posts: 9
Joined: 06 May 2011
Location: China
|
Remember, I am strictly a layperson without any legal training. Please, if in doubt, be sure to use the services of a professional lawyer whom you trust about this investment.
We offer details relevant to forex trading and currency exchange. This includes hottest news,ideas, articles or blog posts, tutorial, movies, and other forex trading.Click here
|
|
Tue May 17, 2011 8:51 am |
|
|
|
