ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A savings account is an account to hold money not spent on current consumption.

Detailed explanation-2: -A commercial bank is the most common depository institution which lends, issues, borrows, and protects money. Commercial banks offer many services to people such as checking and savings accounts, issuing loans and credit cards, and providing customers with financial advice.

Detailed explanation-3: -A checking account is a deposit account held at a financial institution that allows withdrawals and deposits. Also called demand accounts or transactional accounts, checking accounts are very liquid and can be accessed using checks, automated teller machines (ATMs), and electronic debits, among other methods.

Detailed explanation-4: -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-5: -A tiered savings account offers a higher rate of return the higher your balance is. If you have a large savings balance, using a tiered account can help your money grow while keeping it liquid and protected by federal deposit insurance.