Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I was perusing CDs in my Schwab account, and was going for this one, but upon reviewing the order, I see this. If I buy a $10,000 CD, I expect the cost to be $10,000. What gives?
I was perusing CDs in my Schwab account, and was going for this one, but upon reviewing the order, I see this. If I buy a $10,000 CD, I expect the cost to be $10,000. What gives?
You're between interest payment dates when you're buying a CD on the secondary market. You pay the seller the accrued interest thru the date of purchase and then receive that amount (plus whatever accrues to you as the new owner until the next interest payment date) from the issuer. Standard in these transactions.
You're between interest payment dates when you're buying a CD on the secondary market. You pay the seller the accrued interest thru the date of purchase and then receive that amount (plus whatever accrues to you as the new owner until the next interest payment date) from the issuer. Standard in these transactions.
Oh - secondary market - I must have missed that - I want new issues. Thanks!
I was perusing CDs in my Schwab account, and was going for this one, but upon reviewing the order, I see this. If I buy a $10,000 CD, I expect the cost to be $10,000. What gives?
Did you notice maturity date of February 22 2024, 10 days from today. Pass on this one. You may get 10 days of interest.
CD issued at lower rate coupon. Pay premium on coupon.
I was perusing CDs in my Schwab account, and was going for this one, but upon reviewing the order, I see this. If I buy a $10,000 CD, I expect the cost to be $10,000. What gives?
Did you notice maturity date of February 22 2024, 10 days from today. Pass on this one. You may get 10 days of interest.
CD issued at lower rate coupon. Pay $10 premium on coupon. The holder makes $10 + accrued interest.
One other note of caution, secondary market CDs do not compound. FYI.
I’ve never bought any secondary and don’t plan to. But thanks.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
