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24 votes
24 votes
If you want a higher interest rate and need to make only a few transactions per month, which type of account should you choose?

A. Checking account
B. Certificate of Deposit
C. Savings account
D. Money market account

User Tim Banks
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1 Answer

15 votes
15 votes

Final answer:

For a higher interest rate with few monthly transactions, a Certificate of Deposit (CD) or a money market account would be the best choice, as checking accounts offer lower interest and savings accounts have withdrawal restrictions.

Step-by-step explanation:

If you desire a higher interest rate and only need to conduct a few transactions per month, the type of account you should choose is a Certificate of Deposit (CD) or a money market account. A checking account is convenient for frequent transactions but typically pays little to no interest. A savings account usually offers some interest and allows for electronic access to funds, but could include withdrawal limits. However, a CD often offers the highest interest rate in exchange for leaving your money deposited for a set period, with a penalty for early withdrawal. Money market accounts can also offer higher interest rates and may allow for limited check-writing abilities.

User Agriz
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