ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a checking account
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a savings account
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a credit card account
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a certificate of deposit
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Detailed explanation-1: -Fixed Deposits (FD) are investment instruments offered by banks and non-banking financial companies, where one can deposit money for a higher rate of interest than savings accounts. These deposits, hence, offer the highest rate of interest, ranging from 4 to 7.
Detailed explanation-2: -Certificates Of Deposit With The Highest Interest Rates A CD is a type of savings account that typically offers a higher interest rate than a traditional one. And while the interest rate on CDs can vary, some offer rates as high as 5.00% APY.
Detailed explanation-3: -A certificate of deposit (CD) generally earns savers a fixed annual percentage yield (APY) on money that’s deposited for a set period. Typically, the APY on a CD is higher than a bank’s savings account since it requires your funds to be locked in for the term of the CD.
Detailed explanation-4: -Decide the right term length. Shop for the best rates. Pick a CD with a minimum deposit you can afford. Check for early withdrawal penalties. Choose the right type of CD. Find a federally insured bank or credit union. 05-Oct-2022