High Yield Cd

I have $ 25,000 in a savings account that I would put in an account that may be of some interest, but want to ensure it is safe. My bank offers a high yield CD short term (10 months) the commitment required. They guarantee a return of 5%. I want to put the account of 2 years.

Short answer: Yes, definitely.

If you want more: 5% is a statement of agreement, but I would hesitate to hang my money so long. If you ever need money for nothing (emergency payment, down, or otherwise), you must pay a penalty for leaving.

My suggestion: Look in some good money market accounts. They are just as safe as you use a bank or investment company. You can earn 5% + on your money, but also had two other advantages: 1) You can withdraw your money at any time without penalty and 2) if interest rates rise, so will your return. In the CD you're stuck with only 5% for two years, even if interest rates rise.

I use the fund money market Paypal. He currently earns 5.04%

It is a safe investment. You should also look to investment firms such as Merrill Lynch, who can offer an even higher rate because of the wider market they deal in.

Yes, it is a very safe investment.

I would say that buying a certificate of deposit with a FDIC insured depository institution is about as hard as you can get these days.

Federal Deposit Insurance Corporation (FDIC) guarantees that the U.S. government will replace a sum of money to $ 100,000 per depositor per insured if the bank can not return your deposit under his own power. This does not guarantee an interest for the period after the bank making the request, but at least your initial investment will be safe.

Yes, CDs are covered by the FDIC.

Put it in the next 10 months. Not 2 years. It is never a good idea to have your money available to you for so long. If the stock market crash, you want to make sure that money is available to buy shares at prices storm. While everyone is scrambling to recover the money they lost, you can use the money to clean up the often very strong, as Microsoft, Dell, Google, etc.

Yes.

It depends what kind of performance you want and your time horizon. A 5% return may sound good, but about half the historical rate of return of stocks and you have reinvestment risk. This means that you have the risk of not being able to get the same or higher return when the CD matures. Ten months from now, especially if the Fed cuts rates, you may not be able to get 5% back and in a declining rate environment, stocks are usually the best asset class hold.

I would put money in a money market fund, most of all are the result of more than 4.3% and are completely liquid, or maybe some T-Bills and invest in shares if the market declines, after all the recent highs.

It is safe as long as the CD is FDIC insured. If the bank fails, the FDIC pays and is supported by the U.S. Gov't.

http://www.fdic.gov/deposit/deposits/ins ...

If the account is insured by the FDIC is safe. Ask the bank manager if that is the case.

If it is me, I would have put it there already. It is a very good% age. You should know that almost all U.S. banks have FDIC protection. As you said, you are ready to place it there for 2 years. = 24 months. The CD requires 10 months. If you have understood. (Go for It)