To keep the $4,000 in the bank without any deposits or withdrawals for 3 years, Samuel has a few options. Here are a few possibilities:
1. Savings Account: Samuel can open a savings account with a bank. Savings accounts typically offer interest on the money deposited. The interest rate may vary depending on the bank and the type of savings account. By keeping the money in the savings account for 3 years, Samuel can earn interest on the initial deposit of $4,000.
2. Certificate of Deposit (CD): Samuel can also consider investing the $4,000 in a Certificate of Deposit (CD). A CD is a type of time deposit that offers a fixed interest rate and a specific term. The term can range from a few months to several years. By selecting a 3-year CD, Samuel can lock in a higher interest rate than a regular savings account. However, it's important to note that with a CD, the money is generally not accessible until the term ends without incurring penalties.
3. Money Market Account: Another option is a money market account. This type of account combines some features of a savings account and a checking account. It typically offers a higher interest rate than a regular savings account, but with more flexibility in accessing the money compared to a CD. Samuel can keep the $4,000 in a money market account and let it grow over the 3-year period.
It's worth mentioning that interest rates, terms, and account features can vary between different banks and financial institutions. Samuel should consider researching and comparing different options to find the one that best suits his needs and financial goals. Additionally, it's always a good idea to read the terms and conditions and ask any questions to fully understand the account before making a decision.