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CD account
I have had a CD account for about 10 years now that my parents set up for me when I was young. At one time it was up to 6000 dollars and the last time I received an update it was down to 3000 dollars. My parents tell me to leave it in and it will eventually go back up, but I am afraid with the failing economy that I will lose almost all of it, if I haven't already. I would like to take it out and spend 500 on back bills and save the rest to eventually put a down payment on a house. I am 24 female and I am good at saving money. Thanks
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Some body is pulling money out of your acct
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Are you sure that your account is a CD account? The reason that I ask is because you said that your account 'went down' 3,000 dollars... And that isn't possible unless someone made a withdraw.
CD's are not like stock. A CD account is more like a savings account. You're not investing the money in anything... The purpose of a CD account is to acrew interest.
Here is how it works... You dump your money into your CD account for a specific period of time. This period of time varies. It could be six months, a year, or two years. Then the question is, 'Why? What's the difference?' The difference is that the longer you agree to keep your money in the CD, the greater percent of interest you acrew. For example, a six month CD may only offer you .02% interest, while a year might be .03%, two years .04% and so on.
After the period of time that you have selected has ended, your CD comes up for renewal. You can keep your money in or take your money out. Let's say that you want to take your money out before your CD is up for renewal... You can, but you have to pay a penalization fee. The penalization fee may vary, but it certainly isn't half.
That would be the only way you would lose money from your account.
With the current, poor ecomony the best thing to do with a CD would actually be to KEEP IT IN THE CD. Because as the economy declines, the interest rate drops, and your money yields less of a return.
The best thing to do before making a decision... Is go to the bank and discuss your options with a customer service representative. While all banks must adhere to certain laws, all banks vary-a little anyway-in the products that they offer.
But the first thing to do... Find out if your CD is really a CD and, if it is, find out where the 3,000 dollars went. Because, like I said, you didn't 'lose' the money, someone took it out of your account.
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