ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A certificate of deposit (CD) is a type of savings account that requires the account holder to leave their money in the account for a specified amount of time, known as the CD “term, ” in exchange for earning a fixed rate of interest.

Detailed explanation-2: -Money market accounts (MMAs) and certificates of deposit (CDs) are types of federally insured savings accounts that earn interest. But their rates and ease of access differ. CDs tend to have higher rates than money market accounts and give no access to your money until a term ends.

Detailed explanation-3: -A money market account is a type of savings account that usually offers a higher interest rate and easier access to your money than a typical savings account. That’s right, you can get checks or a debit card to use your savings-though you might be limited on how often you can make a withdrawal.

Detailed explanation-4: -A certificate of deposit (CD) is a low-risk savings tool that can boost the amount you earn in interest while keeping your money invested in a relatively safe way. Like savings accounts, CDs are considered low risk because they are FDIC-insured up to $250, 000.