Investment and interest question(CD's,etc)...?

I have 1,000 I would like to invest. I am wondering if I were to invest in a 3 month cd if I would have to pay interest on my earnings after the CD has matured? I guess I want the best return on any investment over this 3 month period and dont want to have to pay interest. What are my investment options for this?

I am not sure what you are talking about. I will give you my standard cut-and-paste recommendations on short term investments:

Consider the Vanguard Prime Money Market Fund with a current compound yield of ~4.25% APY.
https://flagship.vanguard.com/VGApp/hnw/...

If you are in a high tax bracket you may prefer their tax exempt money market funds:
https://flagship.vanguard.com/VGApp/hnw/...

Sometimes other institutions will have a higher teaser rate, but Vanguard tends to have the highest yields I've found over the long run. (Vanguard money markets are not FDIC insured, however.)

Article on teaser rates:
http://www.marketwatch.com/news/story/ba...

Bankrate.com provides links to CD's with high interest rates as well as high interest rate banks.
http://www.bankrate.com/
http://www.bankrate.com/brm/rate/deposit...



ING and HSBC often have rates close to Vanguard, and most of their products are FDIC insured. You can check these at the following links:

http://home.ingdirect.com/open/open.asp
http://www.us.hsbc.com/1/2/3/personal/sa...

You will pay tax on all these alternatives except the tax exempt money market.

(If you are investing for a long period of time and are willing to accept some volatility, you should consider putting some money into no-load low-expense mutual funds. These are not guaranteed, but over the long run produce much higher returns.)

You want to try that questions again? If you invest money, you earn interest, not pay it.

You will not have to pay taxes at the end of the 3 months. You will get a 1099-I at the end of the year with interest earning for your taxes.

What do you mean by paying interest on your earnings? Are you asking about paying taxes on your earnings? Yes, you have to pay taxes on your earnings with whatever investment you choose. But, you pay taxes at the end of the year when you file your income tax. Depending on how much you make depends on how much taxes you pay. On a $1,000 CD you are not going to make much in 3 months.
(1,000 X .035 X 3/12 =$8.75)
I am not sure if you can invest in a 3 month CD with that little amount of money. If you have a checking account I would suggest opening an account at ING. You will make around 3% and you can take your money out at any time unlike a CD.

yes you do have to pay taxes on the interest on the cd.

the rates for cd'r really suck now with these pointless rate cuts.

tax exempt money market fund,,,,,,,,
unless you are doing well and since you are investing 1000...probably not...you will do better with a regulat cd........