Final answer:
An interest-bearing checking account allows for debit card use and earns interest. A certificate of deposit is best for setting aside money for emergencies with a penalty for early withdrawal. A money market deposit account is suitable for short-term savings goals.
Step-by-step explanation:
Interest-bearing checking account: This type of account allows for debit card use and earns interest on the money deposited. It combines the features of a checking account and a savings account. An example of this account is a high-yield checking account.
Certificate of deposit: This account is best used to set aside money in case of an emergency or for long-term savings goals. It earns a fixed rate of interest over a specific period but has a penalty fee if the deposit is withdrawn before the maturity date.
Money market deposit account: It is a type of savings account that generally offers higher interest rates than regular savings accounts. It is best used for short-term savings goals and offers limited check writing privileges. An example of this account is a money market savings account.
Savings account: It is a basic type of bank account that allows individuals to save money while earning interest on their deposits. It is ideal for putting aside money for future needs and emergencies.
Learn more about Types of Bank Accounts