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I've just graduated high school and money for graduation presents are slowly flowing in. The majority of the money I will be getting that I want towards a tuba is coming from my grandfather. I'm helping him sell his truck and if I can sell it for $7000, I get $1000 towards a tuba, anything less than $7000 I get $500. I wanted to ask you guys what you thought about CD accounts to help save for a tuba. I know I have to wait to take the money out or I get charged a few for not waiting, but don't CD's have the best interest rates? Anything you guys can think of is appreciated.

In short, for that amount of money, a CD isn't going to do very much. CDs are meant more as long-term accounts -- banks pay you interest so they can use that money for their own investments. CDs mean they have your money for a longer amount of time, guaranteed (you can't withdraw early), so it will earn you more than a savings account. A CD will probably earn you 1% or 2% interest, as opposed to a savings account that is like 0.1% (probably less). At best, if you start with $1,000 in an account, you probably won't make more than $20/year on it. That's certainly not bad, but it's not going to help much with buying a tuba.

How it *will* help you is to have the money in a safe "hands-off" place. The best way to save money is to not spend it!

Good luck!

CD's are long term investment material. Generally for people with large cash reserves i.e. people at the height of their earning potential. While it is good that you are contemplating these things, given that interest rates are so low (about 1%), for it to have any affect on your ability to purchase a significant item, such as a tuba, is negligible. It is better, to have the cash available, such as in a bank account at a credit union (not a bank, the interest rates are higher at credit unions without the cash restrictions of a CD), in case of either emergency or if you decide rather spend 1K for something from China rather than 10K for something from Germany. It's you're money you should be able to access it when you need it.

That said, you should never, EVER take investment advice from someone you don't know on the internet. I know it sounds silly but it's a slippery slope until you end up in a pyramid scheme or getting scammed. Talk it over with you're parents or grandparents, go see a banker at the bank (do your research first and see which financial institution gives the best rate if you decide to get a CD) they have you're best interest at heart and will know what is really best for you.

Thanks. My current account is at a credit union and I'm opening an account at BB&T tomorrow. I will still have the credit union account but won't use it as much. So the credit union would be best?

Start with your seven thousand, then put 10-15% of every paycheck you earn. Before you know it, it will build up well over the $10k mark... Good luck!

Oops. I misread the OP. NEVER MIND!!!

Well it's gotta be a CC 4/4 or 5/4(kinda leaning on the 5/4 side), 4 piston 1 rotor, not Chinese. I kinda want to save enough to buy basically any tuba that doesn't exceed $10000. The best tuba I have ever played, and want more than any right now is a Willson 3050. My private lesson teacher has one and I've played on that when he wants to try my school horn. I know new its $11 0r $12000, but I think he got his used for $8000.

Yes its in the other room. Its just a Conn 5-J. I plan on saving during college and hopefully buying Junior year.