confused!

[asscollection]

So I have a job teaching some summer day camp classes. Thing is, I'm being employed as an "independent contractor" which I guess is like being self-employed (?) so I'm having to take 30% out of my paycheck myself. I think. I'm planning on saving all my gas, supplies, and food receipts so that can be all tax deductible later

Comments

[cmarie14]

I've never heard of one, but I'm guessing that if he said it the way you typed it, he meant a Certificate of Deposit. You'd get a return of maybe 4%? (I'm not really sure.) And I'm not sure you can do such a short CD, but you have until next April before you'd have to take it out. :)

[asscollection]

Yeah, the shortest CD I've ever heard of is six months.

Thing is, I need most of the money I make this summer to pay tuition costs in August, so if I do go with a CD then I won't be able to put very much in there. :\

[lapenn]

why not just do the CD with the "save for taxes" money and keep the rest in a high yield savings account that can be access for your August tuition?

[lapenn]

* accessed

[asscollection]

That's a really good idea!

[tropism]

No, CDs come in everything from multi-year down to 12, 6, 3, 2, and 1 month jobs, and even one-week and one-day CDs. However, the shorter the timeframe involved, the more money you generally have to put into them, and many banks don't offer -- or at least, don't advertise -- these short-term CDs.

[box_of_rocks]

You can do CDs for short periods of time (I worked in a bank and we had 7 day CDs) but generally the shorter ones require more money (like $2500 -$5000?) and the interest rate is lower. The shortest period that my bank is currently advertising is 91 or 100 days, and the APY is only 3.5%, but the minimum is $1,000. It's definitely something you would need to call around for, because different banks will have different specials. But generally, short periods of time with small amounts of money are only going to yield a few bucks.