Select the correct answer.

Question

Rick needs a place to store his emergency fund. He has a seasonal job, so he will need this money in the next month. Which type of savings plan would be best for Rick to use?

A.
certificate of deposit
B.
bond fund
C.
basic savings account
D.
money market fund

Answer 1

The best option for Rick, who needs access to his emergency fund within the next month, would be:

C. basic savings account

A basic savings account provides liquidity and easy access to funds without penalties, which is crucial for Rick's immediate needs. The other options either lock up funds for a period (like a certificate of deposit) or may involve risks or restricted access (like bond funds and money market funds).