investing






 

Question by  rakshita (11)

What is the difference between a CD and an IRA?

 
+6

Answer by  sami (14)

IRA means "Individual Retirement Account". It is a taxable account. CD means "Cash or Current Deposit Account". One can deposit cash in bank with a fix rate of income.

 
+6

Answer by  John (9008)

An IRA is a form of retirement savings that offers tax advantages and helps you save for retirement. A CD is basically just a special savings account with a bank; you get paid interest for letting them keep your money for a set period of time, which varies.

 
+5

Answer by  timeismoney (994)

A CD is a safe savings investment on which you must pay income tax on interest earned. An IRA is usually a bundle of different investments in a tax deferred account so that you pay no taxes on its earnings until you begin to withdraw it after age 70.

 
+4

Answer by  tamarawilhite (17883)

CD is certificate of deposit, for depositing your money for a set term, you get a better interest rate. IRA is Individual Retirement Account and can contain CDs or stocks.

 
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