Question

Janelle likes to keep all her savings goals separate, so she has an account for each one , including an account to save for her college textbooks every semesterShe buys books about every 6 months, with roughly $550 due each time. She likes to save the money up in installments , with auto-deposits from each of her twice monthly paychecks. She's wondering if her online savings account, earning 0.75\% , is still her best option for monthly deposits toward her textbooks . Which account would you recommend ? Why

Answer 1

Answer:

Her online savings account is the one I will recommend.

Step-by-step explanation:

I will say the online savings account is the best option. This is because when looking at this as a whole, I don't think there are that many alternatives she can think of especially when we consider that she saves just $550 every 6 months. Thus, the 0.75% interest rate for her online savings account is very much okay. Therefore, even if she was able to get another option that had a slightly better interest above the 0.75%, I don't think it that will be too much of a difference.