Question

Dylan is concerned about the safety of the money in his savings account. Which type of depository institution should he choose?

Answer 1

Dylan should choose an accredited commercial bank. Banking with a commercial bank gives one the opportunity to make deposits and withdrawals from one's account at any time and at the same time earns interest on the money one have in the account. Money that is deposited in a commercial bank is relatively safe because the government had ensured that those commericial banks are properly insured.