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Old 02-03-2008, 09:03 AM   #8
Recycles dryer sheets
 
Join Date: Nov 2003
Location: Charlotte
Posts: 254
Audrey's reply makes sense except for the noted issue of liquidity until maturity. CDs, like bonds, can be marked to market and getting your money before maturity will make what you can get out (probably) different than what you put in. It is the same as holding individual bonds instead of a bond fund.

Fyi, when providing asset allocation info on your account, Vanguard counts CDs as bond.
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