Answer:
C. You earn interest from a savings account, but you do not from a money market account.
Savings accounts and money market accounts are two types of deposit accounts offered by banks and credit unions. While they are similar in many ways, there are some key differences between them, especially when it comes to earning interest.
Both savings accounts and money market accounts are designed to help people save money and earn interest on their deposits. However, savings accounts typically offer lower interest rates than money market accounts. Money market accounts often pay a higher interest rate than savings accounts because they require a higher minimum balance and offer more flexibility in terms of withdrawals and deposits.
One of the key differences between savings accounts and money market accounts is the way they earn interest. With a savings account, you earn a fixed interest rate on your deposits. This rate is set by the bank or credit union and remains the same for the duration of the account.
Money market accounts, on the other hand, often have a variable interest rate that fluctuates based on market conditions. This means that the interest rate can go up or down over time, and you may earn more or less interest depending on the prevailing rates.
In summary, while both savings accounts and money market accounts offer opportunities to earn interest on your deposits, money market accounts generally offer higher interest rates and more flexibility. However, savings accounts are often more accessible and may offer more stability in terms of interest rates.