Question

Which of the following accurately describes savings accounts ?

A. they learn compound interest.
B. they provide greater returns on investment that investment portfolios.
C. they are riskier than investment portfolios.
D. there are penalties for early withdrawal.

Answer 1

the answer is c.) because it is talking about savings account s

Answer 2

D. there are penalties for early withdrawal.

Step-by-step explanation:

The savings account is one of the safest applications, but the profitability is very low and the interest applied is simple interest. The savings income is calculated once a month on the smallest balance in the account. This penalizes withdrawals. For example, if your account had $ 1000 for 29 days, but on the 30th day you took $ 500, interest every month will be calculated at $ 500, not the pro-rated amount.