Saving And Investment Options At The Bank
Your bank can do more for you than simply hold your money and issue checks. Many banks, especially larger national banks, also offer investment and savings options for customers. Here are some of the more common ones:
Bonds: A bond is a debt security certificate. In simple terms, when you buy a bond you are lending money to some enterprise. That might be a corporation or it might be the US itself. In exchange for lending the money, you get a specific interest rate which is paid to you either at maturity of the bond or at intervals during the life of the bond. The principal is paid back to you at maturity.
The Certificate of Deposit (CD) is perhaps one of the most well known investment options sold at banks. They are a unique type of deposit account with special requirements. They pay a higher rate of interest than a regular […]
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