Certificate of Deposit

by astanhaus

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Bobbi’s husband is being relocated to europe. I know boo-hoo, Bobbi has to visit Europe regularly at the company’s expense.

But it’s going to be sad for these inseparable newlyweds to be separated for weeks at a time.

I tried to cheer her up with a new investment vehicle I recently learned about.

Bobbi could deposit a sum of money as a certificate of deposit (CD) and when it matures after a year she will get her $$ back, plus an extra cushy interest payment.

(click on the bold-faced vocab words:))

The withdrawal penalties, if she gets too tempted to use the $$, will keep Bobbi in check. Plus, if she buys it at a FDIC-insured bank, the CD itself is insured.

My unconventional cheering up worked! They are already planning their second honeymoon for when his year in Europe is over, fully-funded by their CD.

See, separation can be a good thing! It grows $$. And makes the heart grow fonder.

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(Originally published on Amanda Stanhaus’s financial literacy blog: XO, Bettie.)

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