Government bonds vs Certificate of deposit
Sep 21st 2007, 5:15 pm
#1
Forum Regular
Thread Starter
Joined: Apr 2007
Posts: 42
Government bonds vs Certificate of deposit
I have some money to save . what is better, government bonds or certificate of deposit . I live in Florida which has no income tax
Sep 21st 2007, 6:53 pm
#2
Boomshacalaca!!
Joined: Dec 2005
Location: South of the North Pole.......Colorado
Posts: 5,066
Re: Government bonds vs Certificate of deposit
Both are regarded as low risk investing. if its a concern for you and part of your decision, also look into the realm of fed tax liability at the time of maturity. Bonds and T-Bills' "interest" earned as income typically are not subject to fed tax but often are at state levels (where applicable) and/or vise versa - yet CD's its fair game. (i'm not an expert so dbl chk). Maturity period is something people factor too. Many people may have varying opinions here about which is better, investing in a bank or government?
Sep 21st 2007, 8:23 pm
#3
Septicity
Joined: May 2004
Posts: 23,762
Re: Government bonds vs Certificate of deposit
Are you still earning? How old are you? What is your status in the US? How much are you worth? Do you have any dependents? The list goes on and on...
Sep 21st 2007, 8:27 pm
#4
Joined: Mar 2003
Posts: 68,280
Re: Government bonds vs Certificate of deposit
Sep 21st 2007, 8:29 pm
#5
Joined: Mar 2003
Posts: 68,280
Re: Government bonds vs Certificate of deposit
Both are regarded as low risk investing. if its a concern for you and part of your decision, also look into the realm of fed tax liability at the time of maturity. Bonds and T-Bills' "interest" earned as income typically are not subject to fed tax but often are at state levels (where applicable) and/or vise versa - yet CD's its fair game. (i'm not an expert so dbl chk). Maturity period is something people factor too. Many people may have varying opinions here about which is better, investing in a bank or government?
Sep 21st 2007, 9:21 pm
#6
Mr. Grumpy
Joined: Jun 2003
Location: Nashville, TN
Posts: 3,100
Re: Government bonds vs Certificate of deposit
open a HSBC direct savings account and get 5% without being locked in
if you want a more long term thing get a couple of mutual funds
Sep 27th 2007, 1:55 am
#8
Up Yir Kilt
Joined: Oct 2002
Location: Scotland > London > San Francisco
Posts: 672
Re: Government bonds vs Certificate of deposit
I agree - both are crap and savings accounts can compete with the interest rate.
As long as you are looking to save and not invest and make the money work then the savings account is the way to go. Some good info at bankrate.com
As long as you are looking to save and not invest and make the money work then the savings account is the way to go. Some good info at bankrate.com
Sep 27th 2007, 4:17 am
#9
BE Forum Addict
Joined: Dec 2002
Location: Ft Lauderdale, FL
Posts: 4,792
Re: Government bonds vs Certificate of deposit
Reg. Frank R.
Sep 27th 2007, 3:33 pm
#10
Mr. Grumpy
Joined: Jun 2003
Location: Nashville, TN
Posts: 3,100
Re: Government bonds vs Certificate of deposit
Sep 27th 2007, 3:34 pm
#11
Joined: Mar 2003
Posts: 68,280
Re: Government bonds vs Certificate of deposit
The Bastards ...lol...
Sep 27th 2007, 6:06 pm
#12
BE Forum Addict
Joined: Dec 2002
Location: Ft Lauderdale, FL
Posts: 4,792
Re: Government bonds vs Certificate of deposit
