Could someone explain the difference

**bamamomto4** · 02-04-2004, 06:54 PM

between a CD and a Savings Bond..?? Ashley has a $50.00 bond that steve's dad gave her one year for her birthday. How do they mature? What do they cost? when can they be cashed in..??? Same questions about a cd.....Which is better to have..???Any info is appreciated...

TIA!!!

**PrairieRose** · 02-04-2004, 07:48 PM

A cd is a certificate of deposit. It has a set amount of time to be on deposit but your money is all there regardless. If you cash in a 6 month cd before it's date you get a penalty where they'll charge you a percentage. A savings bond is bought from the gov't and usually takes (?) I could be wrong.....but 30 yrs. to fully mature.....? I have a couple of these and they have a table at the bank that they can look it up for you if it's not on the bond. I guess their are probably bonds for any length of time too, but the longer the time the more it pays. If you have a $100 savings bond and you cash it in at 5 years you get something like $28.50 for it....... .

**bamamomto4** · 02-04-2004, 10:04 PM

I thought on Ash's it said it would mature in 6 months from date of purchase...I could be wrong,since i don't know much about these. I'll take it to the bank and see. She's wanting to cash it in..I say no

Also...if she has a $50 bond...would it only be worth $50....even is say....40 yrs..? Or is more money added to it?

**Darlene** · 02-05-2004, 07:51 AM

http://www.publicdebt.treas.gov/sav/sav.htm
This site might help.

**PrairieRose** · 02-05-2004, 09:46 AM

Look in the upper right hand corner of the bond Tammy, I think the date is there. Good link Darlene! I've bookmarked it

**bamamomto4** · 02-12-2004, 12:29 PM

Thanks ladies

**SusieJD** · 02-15-2004, 12:13 PM

Which is better to have though? Which earns more money in a time period. I'd be interested in learning more about CD's. My MIL invested in them, but we're not close enough to talk about it.

Susie in MN