Certificates of deposit or CDs offer a higher interest alternative to low interest savings accounts. However, if you need your funds available to you on a moment's notice, CDs may not be right for you. The early-withdrawal fee might be a deal-breaker. Take our quiz and find out if CDs are the right investment for your needs.
The interest rate on savings accounts tends to be:
Stocks are usually considered _____risk investments.
Certificates of deposit (CDs) offer a _____ interest rate than savings accounts.
The penalty for withdrawing money from a CD before its maturity date is called:
an early withdrawal fee
a late-withdrawal fee
a deposit-withdrawal fee
Certificates of deposit are a great long-term investment to fund expenses such as:
both of the above
Insurance that protects the money you have in bank accounts and CDs is provided by:
the County Deposit Insurance Corporation
the State Deposit Insurance Corporation
the Federal Deposit Insurance Corporation
Which type of interest increases each time its taken?
Which of the following terms represents the simplest interest rate at the start of a year?
the annual percentage rate
the annual percentage yield
the annual percentage credit
CD laddering means dividing up your funds and investing different amounts in different:
money market accounts
It's a good idea to avoid taking _____while holding a CD.