Question
Keira is new to earning money and saving. She doesn't have a lot of money to open an account. Which savings option would be best for her? Select a response. Savings Account Money Market Account (MMA) Certificate of Deposit (CD) Checking Account
Answers
GPT-4o mini
For Keira, the best savings option would likely be a **Savings Account**.
Here's why:
- **Low Minimum Balance**: Savings accounts typically have low or no minimum balance requirements, making them accessible for someone new to earning and saving money.
- **Liquidity**: Savings accounts provide easy access to funds without penalties, allowing her to withdraw money if needed.
- **Interest Earned**: While the interest rates may not be as high as other options like CDs or MMAs, she will still earn interest on her balance, which is beneficial for saving.
A Money Market Account may have higher minimum balance requirements, and CDs tie up money for a fixed term, which may not suit someone just starting out. A checking account is primarily for day-to-day transactions and typically earns little to no interest.
Here's why:
- **Low Minimum Balance**: Savings accounts typically have low or no minimum balance requirements, making them accessible for someone new to earning and saving money.
- **Liquidity**: Savings accounts provide easy access to funds without penalties, allowing her to withdraw money if needed.
- **Interest Earned**: While the interest rates may not be as high as other options like CDs or MMAs, she will still earn interest on her balance, which is beneficial for saving.
A Money Market Account may have higher minimum balance requirements, and CDs tie up money for a fixed term, which may not suit someone just starting out. A checking account is primarily for day-to-day transactions and typically earns little to no interest.