Final answer:
A savings account provides safety and easy access to funds, with the added protection of FDIC insurance up to $250,000, but offers a lower rate of return compared to other investments. One advantage of keeping money in a savings account is easy access to funds, while a disadvantage is the low return on investment.
Step-by-step explanation:
One advantage of keeping money in a savings account is that it offers easy access to your funds. You can write checks or use a debit card to make transactions. Additionally, money in a savings account is extremely safe due to the security measures provided by banks. The Federal Deposit Insurance Corporation (FDIC) protects the savings of individuals, ensuring that if a bank goes bankrupt, depositors will receive their deposits back up to $250,000.
However, a disadvantage of keeping money in a savings account is that the return on investment is typically low. Savings accounts usually offer lower interest rates compared to other investment options, such as bonds or stocks. Therefore, if your goal is to earn significant returns on your money, a savings account may not be the most suitable choice.