Tamara has $500 she is looking to save for a class trip. She wants to earn the most possible interest and will not need access to her money for a full year. Which type of savings account will be best for Tamara?

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	Certificate of Deposit (CD)
B	Money Market Account
C	Savings Account
D	Checking Account

Explanation:

Detailed explanation-1: -If you deposit even a small amount of money into a savings account, compounded interest can do the work for you and make your money grow exponentially faster than it would earning simple interest.

Detailed explanation-2: -It’s easy. Simply divide your APY by 12 (for each month of the year) to find the percent interest your account earns per month. For example: A 12% APY would give you a 1% monthly interest rate (12 divided by 12 is 1).

Detailed explanation-3: -Traditional savings accounts earn the least amount of interest. Money market accounts earn higher interest rates than traditional savings accounts but still typically offer lower interest rates than other accounts. CDs generally have higher interest rates than money market accounts.

There is 1 question to complete.