Question

Which interest-bearing account is best for people who wont neeed access to there money for several months or longer

A. saving account
B.certificate of deposit
C.checking account
D.credit card

Answer 1

The answer is B) Certificate of Deposit (which can also be called CD.

Step-by-step explanation:

In a certificate of deposit, you pick a length of time, called a term, for the bank to hold onto your money. Typically, the longer your CD term, the higher your interest rate.

Putting money in CD means you have less access to it than you would with a checking or savings account. You must keep the money in the CD for the entire term or you will have to pay a penalty. With a longer term CD’s, make sure you don’t need this money in the short-term. That way, you won’t have to worry about early withdrawal penalties.

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Answer 2

Certificate of deposit is the best interest bearing account for people who doesn't need their money for several months. It is a written document from the bank that it has received money from a person for a long time period.