Question

What are the four most common ways banks offer people to store money?

Answer 1

Banks offer people four common ways to store money: checking account, savings account, certificate of deposit (CD), and money market account.

Step-by-step explanation:

Banks offer people several ways to store money:

1. Checking account: This type of account allows you to deposit money and easily access it through checks, debit cards, or online payments. It is suitable for day-to-day transactions and paying bills.
2. Savings account: A savings account is designed for long-term storage of money. It typically pays interest, although at a lower rate than other options. It is a safe place to keep money and build savings.
3. Certificate of deposit (CD): A CD locks in your money for a specified period of time, ranging from a few months to several years. To which, the bank offers a greater interest rate. However, there is usually a penalty for withdrawing the money before the CD matures.
4. Money market account: A money market account combines features of both checking and savings accounts. It offers a higher interest rate than a regular savings account but allows limited check-writing ability.