Is Your Money Smarter 'In' or 'On' the Bank?
Between bank CDs and bank stock, we discuss which is the better bet.
Is it better to put your money in the bank--or bet on the bank? Investors face this dilemma when weighing the choice between bank certificates of deposit and shares of a given bank's stock. In the discussion below, we explain why the decision boils down to how quickly an investor needs to access the funds. That is, there is no one-size-fits-all solution.
When to Buy CDs
We always emphasize that investors need to think long-term. However, investors also need to be willing to commit money for the long term. If an investor expects to need the money he is looking to invest within a short period, then putting money in the bank makes more sense.
Jaime Peters does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.