ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -Checking accounts are better for regular transactions such as purchases, bill payments and ATM withdrawals. They typically earn less interest-or none. Savings accounts are better for storing money. Your funds typically earn more interest.

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: -Savings accounts earn compound interest, which means the interest you earn in one period gets deposited into your account, and then in the next period, you earn interest on that interest.