If there's another thread specifically dedicated to CD's, feel free to send me there...
I'm considering buying some CD's, and I don't really know where to start. I use Fidelity, and I'm looking at the CD list....
The money I will spend on these CD's is completely free cash for me (I don't need it for anything), so I can wait any time period. I'm guessing this will change the options open to me.
My general questions: What is...
1) Expected yield: do I just choose whichever CD has the highest number? Some of them say 2.3 and such...which is making me question my understanding of expected yield.
2) What is coupon frequency? Is this like a dividend?
3) Does it matter which bank I buy it from? Some of the banks look shady, despite being FDIC insured. Are they all legitimate?
I genuinely want to thank you all in advance for any responses. Melonie and a few other consistent DD posters (you know who you are!) provide such incredible, down-to-earth, invaluable advice on this forum. You guys are awesome!
ETA: Also, I tend to think of CD's as basically free money that many people just don't take the time to consider. Is this incorrect? As long as a CD is FDIC insured, and you don't need the money for something else, is it a risk-free investment?



Reply With Quote


Bookmarks