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What is a Certificate of Deposit (CD) and How Do They Work?

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Because these funds aren’t generally available, that frees them up for banks to utilize in their own lending practices, meaning that you will earn a higher interest rate than on other kinds of savings accounts that have greater liquidity, like a statement savings account. Are CD earnings taxed? Predictability. Still have questions?

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Unraveling the Mysteries of Complex Investment Terms – A Guide for Real People

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Bond A bond is like lending money to a friend, but in this case, it’s to a company or government. The money is saved before taxes, so it can grow without being taxed until you take it out. The money can grow without being taxed, or you can pay taxes now and not later, depending on the type of IRA.

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