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CD’s have a maturity date, and though the money can be pulled out before the said date, in most cases a penalty will occur from the issuer. In my case I would prefer the CD because I have alternate income and other savings that I could pull from in the case of an emergency. I think you should diversify to satisfy your personal and plan B\ emergency needs. For example if I were to put all my savings into high risk, high return stocks I have the potential to gain greatly or lose it all. Therefore I would only put into something of that nature what I could afford to lose. Well a CD doesn’t seem that risky (well we’ll see with the whole bailout deal); sometimes the reward can damper other personal needs...
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