ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A saver who wants her savings insured by the FDIC (Federal Deposit Insurance Corporation) wants to use this savings option. A long-term investment usually means an investment period of one to three months. Stocks are insured against loss by most banks and credit unions.

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: -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-4: -A savings account is a good place to keep money for a later date, separate from everyday spending cash, because of their safety, liquidity and interest-earning potential. These accounts are a great place for your emergency fund or savings for shorter-term goals, like a vacation or home repair.

Detailed explanation-5: -Choosing a high-yield savings account will help you earn more interest than most traditional savings accounts. If you need easier access to your funds, a high-yield checking account offers interest rates that rival even the best high-yield savings accounts, but may come with high minimum deposit requirements.