Relationships
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Parents |
InterestBearingAccount |
FinancialAccounts that have a fixed or adjustable interest rate.
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Children |
CertificateOfDeposit | CDs (certificates of deposit) are bank, credit union or savings and loan instruments that allow the depositor to lock in an interest rate for a specific period of time (e.g. six months, one year, five years). If the money is withdrawn from the CD before the CD matures, there is likely to be an early-withdrawal penalty -- often three month's interest. Generally, the longer the time period of the CD, the higher the interest paid. |
| IndividualRetirementAccount | A tax-deferred retirement account for an individual that permits individuals to set aside up to $2,000 per year, with earnings tax-deferred until withdrawals begin at age 59 1/2 or later (or earlier, with a 10% penalty). Only those who do not participate in a pension plan at work or who do participate and meet certain income guidelines can make deductible contributions to an IRA. All others can make contributions to an IRA on a non-deductible basis. Such contributions qualify as a deduction against income earned in that year and interest accumulates tax-deferred until the funds are withdrawn. |
| MoneyMarket | MoneyMarket is for borrowing and lending money for three years or less. The securities in a money market can be U.S. government bonds, TreasuryBills and commercial paper from banks and companies. |
| TraditionalSavingsAccount | Accounts that pay interest, usually at below-market interest rates, that do not have a specific maturity, and that usually can be withdrawn upon demand |
| TreasuryBill | A negotiable debt obligation issued by the U.S. government and backed by its full faith and credit, having a maturity of one year or less. Exempt from state and local taxes |