Inside: Bank CD rates | CD rates


- advertisement -
  CDs and Investing Basics   Chapter 2: Certificates of deposit
Get paid to let someone else use your money! Invest in CDs.
 
Sponsored by Fidelity Investments   

Investing Basics: Chapter 2 quiz

By Bankrate.com

If you think you've mastered the material in this chapter, take our quiz. After you click the ''submit'' button, the answers will appear below.

  1. Why invest in certificates of deposit, or CDs?

    a) CDs offer higher interest rates than a regular savings account in exchange for not touching your money for a predetermined amount of time.
    b) CDs offer a guaranteed, fixed-income portion to your portfolio of investments.
    Both a and b

  2. True or false? When interest rates are low, it's best to buy long-term CDs.

    True.
    False.

  3. Identify the type of CD that allows you to withdraw money without incurring a penalty as long as you maintain a minimum balance.

    Traditional CD.
    Bump-up CD.
    Liquid CD.
    Zero-coupon CD.

-- Posted: May 1, 2006
<< Previous Chapter | Next Chapter >>
 RESOURCES
Calculate your CD earnings
401(k) savings calculator
When it's OK to tap your IRA
 TOP INVESTING STORIES
Fame & Fortune: Monica Seles
10-year Treasury-buyer beware
9 cash-saving strategies that pay big bucks



TABLE OF CONTENTS
  Ch 1: Building liquid savings
  Ch 2: Certificates of deposit
  • Lock up your money; get higher interest
  • Types of CDs
  • Strategies
  • Early withdrawal penalties
  • Chapter 2 quiz
  Ch 3: Investing in bonds
  Ch 4: Fixed-income investing
  Ch 5: Savings with tax breaks
  Ch 6: Banking institutions
  Ch 7: Bankrate's resources
 More Basics

CDs and Investments
Compare today's rates
NATIONAL OVERNIGHT AVERAGES
1 yr CD 0.62%
2 yr CD 0.76%
5 yr CD 1.21%
- advertisement -
- advertisement -
 
- advertisement -
About us
Advertise with Bankrate
Partners
Press Room
Investor Relations
Contact Us
Sitemap
Understanding Bankrate's rate averages
© 2013 Bankrate, Inc. All Rights Reserved.
Privacy Policy/Your California Privacy Rights
Terms of Use