The Motley Fool Discussion Boards

Previous Page

Retirement Discussions / Retired Fools

URL:  http://boards.fool.com/cds-vs-bonds-12748788.aspx

Subject:  CDs vs. Bonds Date:  6/16/2000  2:52 PM
Author:  mawhinney Number:  4209 of 19483

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?
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us