Question

Tamara has $500 she is looking to save for a class trip. She wants to earn the most money possible interest and will not need access to her money for a full year. Which type of savings account will be best for Tamara

Answer 1

Tamara would need a Certificates of Deposit or commonly known as time deposit account. Time deposit account would earn higher interest than regular savings account because the money is kept in the account for a specified time. The longer the money is kept in the account, the higher the interest rate.