ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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pays the lowest rate of interest of all savings accounts
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requires that money be deposited for a set amount of time
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pays a slightly higher interest rate than other savings plans
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is available only through a credit union
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Detailed explanation-1: -National average savings account interest rate The national average yield for savings accounts is 0.23 percent APY, according to Bankrate’s March 8 weekly survey of institutions. Many online banks have savings rates higher than the national average. The higher the rate, the more interest you’ll earn on your savings.
Detailed explanation-2: -Interest rates on savings accounts are often low because many traditional banks don’t need to attract new deposits, so they’re not as motivated to pay higher rates. But keep an eye out for high-yield accounts, which might earn more.
Detailed explanation-3: -With a regular savings account, you commit to paying in a certain amount each month. In return, the bank or building society gives you a higher interest rate than you’d get with their current account or ordinary savings account.
Detailed explanation-4: -Citibank – APY: 3.85%, min. Marcus by Goldman Sachs – APY: 3.75%, min. Barclays Bank – APY: 3.60%, min. American Express National Bank – APY: 3.50%, min. Discover Bank – APY: 3.50%, min. Ally Bank – APY: 3.40%, min. Capital One – APY: 3.40%, min. More items