Question
In which situation would a savings bond be the best investment to earn interest?
if you need access to your cash quickly
if you are saving each month for a new car
if you are putting aside a chunk of money to purchase a house in five years
saving to pay a tax bill in four months
if you need access to your cash quickly
if you are saving each month for a new car
if you are putting aside a chunk of money to purchase a house in five years
saving to pay a tax bill in four months
Answers
GPT-4o mini
A savings bond would be the best investment to earn interest in the situation where you are **putting aside a chunk of money to purchase a house in five years**. Savings bonds typically have a longer maturity period and can earn interest over time, making them suitable for goals that are more than a short-term horizon.
The other options involve needing quick access to cash or having shorter timeframes, which are not ideal for a savings bond. Savings bonds are not liquid investments compared to other options, so they may not be suitable for purchasing a car or paying a tax bill in the short term.
The other options involve needing quick access to cash or having shorter timeframes, which are not ideal for a savings bond. Savings bonds are not liquid investments compared to other options, so they may not be suitable for purchasing a car or paying a tax bill in the short term.