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A type of savings plan that offers fewer withdrawals, higher interest rates, and is not considered liquid is called?

1) Fixed deposit
2) Savings account
3) Money market account
4) Certificate of deposit

User MJMortimer
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Final answer:

A Certificate of Deposit (CD) is a type of savings plan that offers fewer withdrawals, higher interest rates, and is not considered liquid. It requires you to deposit a certain amount of money for a specified period of time and offers a higher interest rate compared to a regular savings account.

Step-by-step explanation:

A type of savings plan that offers fewer withdrawals, higher interest rates, and is not considered liquid is called a Certificate of Deposit (CD). With a CD, you agree to deposit a certain amount of money for a stated period of time, typically ranging from a few months to several years. In exchange, the bank agrees to pay a higher interest rate than for a regular savings account. While you can withdraw the money before the allotted time, there is a substantial penalty for early withdrawal.

User Blac
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