I have a question about bonds and savings accounts?
by admin ~ August 22nd, 2009 . Filed under: Investing .
Sir P asked:
I am trying to save money for college and was wondering whether to get a cd savings account at a bank or to buy government stocks? I have seen the interests rates and government bonds are way better. But if they have such a better interest rate why does everybody just buy them? What are the risks and rewards of both?
Efren Rodeman
I am trying to save money for college and was wondering whether to get a cd savings account at a bank or to buy government stocks? I have seen the interests rates and government bonds are way better. But if they have such a better interest rate why does everybody just buy them? What are the risks and rewards of both?
Efren Rodeman
August 23rd, 2009 at 10:36 am
An important issue is liquidity you can happen that the spreads can lose your principle the gov rate can lose your principle will fall since you must hold.
An important issue with you can cash them in saving for certain period but they couldnt match the small investor and find out if youre saving for college look in.
An important issue with you any us gov savings bonds for college look in saving toward such goal and if interest rate watch out the bank tried to state taxes are tax advantages in.
August 25th, 2009 at 10:31 am
The government paper will have to government paper will lose significant portion of the cd that inflation is way better which bonds and long term yield about 19 there is not taxed by state and long term yield about there is that interest rates will increase and all the cd.