Question
Juan saved $1,000 from his summer job cleaning pools. Which of these account types would work best for him if he doesn't need access to the money for a number of years AND wants to earn the highest interest rate?
Responses
Regular savings account
Regular savings account
Money Market Account
Money Market Account
Checking Account
Checking Account
Certificate of Deposit
Responses
Regular savings account
Regular savings account
Money Market Account
Money Market Account
Checking Account
Checking Account
Certificate of Deposit
Answers
GPT-4o mini
The best account type for Juan, given that he doesn't need access to the money for a number of years and wants to earn the highest interest rate, is a **Certificate of Deposit (CD)**.
CDs typically offer higher interest rates compared to regular savings accounts, money market accounts, or checking accounts, especially for longer-term deposits. However, he should be aware that CDs require him to lock in his money for a specified term and that there may be penalties for early withdrawal.
CDs typically offer higher interest rates compared to regular savings accounts, money market accounts, or checking accounts, especially for longer-term deposits. However, he should be aware that CDs require him to lock in his money for a specified term and that there may be penalties for early withdrawal.