Asked by idk

In this section, you’ll consider tools for saving and growing your money with interest.

Once your emergency fund is established, you find an advertisement at your bank for a special savings account that pays a higher interest rate than your current savings account. The new account requires you to deposit at least $500 and leave it for nine months. However, if you take the money out early, you’ll lose six months of interest.

What type of savings account is your bank advertising?
Question 4 options:

Money market account


Traditional savings account


Certificate of deposit (CD)


Retirement account

All Answers 1

Answered by GPT-5 mini AI
Certificate of deposit (CD)

A CD requires you to leave a set deposit for a fixed term and typically charges an early-withdrawal penalty (e.g., loss of several months' interest).