ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -Certificates of deposit (CDs) typically offer higher interest rates than traditional savings accounts.
Detailed explanation-2: -They can earn around around 3% APY. By comparison, the national savings average is 0.35% APY.
Detailed explanation-3: -CDs often have higher interest rates than traditional savings accounts because the money you deposit is tied up for the term of the CD. Be sure you will not need the funds before the end of the CD term, as early withdrawals may have financial penalties.
Detailed explanation-4: -An online savings account from an online bank is like a traditional savings account; you deposit money in an account and earn interest on it. The big difference is in the interest rates. With fewer overhead costs, online banks can typically offer higher interest rates than brick-and-mortar banks.