Liquid bank certificates of deposits, known as liquid CDs appear to be an attractive proposition but in truth, liquid CDs are not suitable for every investor. Liquid CDs have only one main advantage. If you withdraw your deposit amount before the maturity of the certificate of deposit, you need not pay any penalty with liquid CDs. Banks charge hefty fees for early withdrawal in the case of traditional CDs, if you need …

There was a period in the United States when investors could purchase long term certificates of deposits (CDs) from banks at annual interest rates of 10% or even more. This might be surprising news for the younger generation but in the mid1980s, the CD rates for five year deposits were around 12%, according to a CD rate chart of Bankrate that analyzed national averages of interest rates over long periods. Unfortunately, long …