Question

A certificate of deposit pays a higher interest rate than a savings account because the money is

Answer 1

Answer:

A certificate of deposit pays a higher interest rate than a savings account because the money is saved in the account for a fixed period of time, which cannot be withdrawn until the maturity date.

Explanation:

A certificate of deposit is known to be a type of account in which depositors save money with a financial institution for a fixed period of time. Thus, the account holder cannot withdraw the money until the fixed date of withdrawal which is the maturity date. As a result, this type of account gets a higher interest rate from the bank than a normal savings account.

Answer 2

not able to be accessed until the maturity of the certificate of deposit without a penalty.

A savings account lets you make withdrawls anytime you want.