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Subject:  CDs vs. Bonds Date:  6/16/2000  2:52 PM
Author:  mawhinney Number:  4209 of 20596

The yield on 6mo. and 1 yr CDs is inching upward to 7.25%. What would be the benefits of holding a CD over purchasing a bond?

A 5yr Jumbo CDs is paying 9.05%. The return looks great but I wonder about turning over the $100,000 min. & not having it fully insured. FDIC insures accounts up to $100,000 but once the interest on a CD began accruing the amount would go over the maximum insured amount and therefore lose the benefit of being insured. Any thoughts?
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