[JingleJangle]

Are CD's at banks a good investment? You can't lose your money in them can you? I was wondering how interest is paid on them, whether it's monthly or yearly? And also, what kind of percentage do they in fact pay?

[jason]

Bank CDs are basically a savings account. You agree to leaving the money in for a certain amount of time, the bank agrees to pay you higher then a normal savings account. Your money has the same protection as a savings account. If you pull your money out before agreed upon date, you take a big hit. A 1099 statement is issued for CD's every year. Interest can be added at preset intervals. You will have to look into the CDs terms to see when you will get the interest.

[savings4me]

If you have extra cash laying around, a CD is the way to go. You can't lose it and the interest rate is almost always higher than a savings account. I have a couple of CDs and I keep rolling them over.