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Which of the following is TRUE when comparing savings accounts and certificates of deposit?

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Which of the following is TRUE when comparing savings accounts and certificates of deposit?
Savings accounts allow you to access your money at all times while certificates of deposit require your money to be left alone for a set period of time




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    1. Quizzma Team

      The statement that is TRUE when comparing savings accounts and certificates of deposit (CDs) is: “Savings accounts allow you to access your money at all times while certificates of deposit require your money to be left alone for a set period of time.”

      Explanation: Savings accounts offer flexibility and allow you to withdraw funds whenever you need them, making them suitable for everyday savings. In contrast, CDs require you to deposit your money for a fixed term (e.g., 6 months, 1 year) and typically impose penalties for early withdrawal, which makes them less accessible. This trade-off often results in higher interest rates for CDs, rewarding you for keeping your money locked in for a certain period.

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