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What's the difference between an individual retirement account (IRA) and a certificate of deposit (CD)?

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asked Apr 27 by SiD (1,970 points)

1 Answer

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answered Apr 27 by melisa (3,130 points)

An IRA  can be thought of as an individual saving account that has tax benefits. You open an IRA for yourself  (that's why it's called an individual  retirement account) and if you have a spouse, you'll each have a separate account.
Certificates of Deposits onn the other hand, are savings instruments issued and administered by banks, credit unions and brokers. Unlike IRAs, a CD can be jointly owned; for example, you and your spouse or you and your child could own a CD together.

 

commented Apr 27 by SiD (1,970 points)
Thank you very much!

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