Question

Bernadette wants to set aside some money, but she wants to have easy access to it without penalty. She is not worried about earning a large amount of interest. Which of the following investments best suits her needs?

Answer 1

There are choices for this question namely:

Certificate of deposit
Government bond
Money market account
Traditional savings account

Bernadette would want to open a traditional savings account as this is appropriate for her needs. She can set aside some money or savings into the traditional savings account and not worry about penalty (i.e. in stocks investment, there is a lot of risk). The down side of a traditional savings account is that the interest rate per year is not very high, in fact, it is very nil and often unrecognizable.