Question

The interest rate you earn on a Certificate of Deposit (CD) is usually higher than the interest on a savings account at the same bank because... Question 8 options: you have to be at least 21 years old to buy a CD. you agree to leave your money on deposit for a specific term. Hmm...The interest rate you earn on a Certificate of Deposit (CD) is never higher than the interest on a savings account. your account balance in a CD must be higher than it is in a savings account.

a: you have to be at least 21 years old to buy a CD.

b: you agree to leave your money on deposit for a specific term.

c: Hmm...The interest rate you earn on a Certificate of Deposit (CD) is never higher than the interest on a savings account.

d: your account balance in a CD must be higher than it is in a savings account.

Answer 1

you agree to leave your money on deposit for a specific term.

Explanation:

Currently the interest rates paid by banks are all low, e.g. the interest rates on a 5 year CD is currently only 0.61% on average, but a savings account pays even less, only 0.6% on average.

The greatest disadvantage of CDs is that you must leave your money in the bank for at least 1 year, and sometimes even more (up to 5 years). While you can withdraw your money from a savings account at any moment.