ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Savings account: A savings account allows you to accumulate interest on funds you’ve saved for future needs. Interest rates can be compounded on a daily, weekly, monthly, or annual basis. Savings accounts vary by monthly service fees, interest rates, and account features.

Detailed explanation-2: -The options include traditional savings accounts, high-yield savings accounts, money market accounts, certificates of deposit, cash management accounts and specialty savings accounts.

Detailed explanation-3: -The account is designed for those who will rarely need to make withdrawals. The adult will be acting on behalf of the child (as a ‘bare trustee’). Although the account is in the name of the adult, the money in the account is held for and belongs to the child.

Detailed explanation-4: -While there are several different types of savings accounts, the three most common are the deposit account, the money market account, and the certificate of deposit. Each one starts with the same basic premise: give your money to the bank and in return the money will earn interest.

Detailed explanation-5: -The Emergency Fund. This is your “Do Not Touch"fund. The “I can touch"fund. This is for things you know are going to happen, but just not every month. "I know what I want, I just need to pay for it"fund. This kind of savings is for a specific goal or purchase. Long-term savings.