Question

All of the following statements about bank accounts are true, except?

1) If the bank is FDIC-insured, your money, up to the FDIC limit, is safe even if the bank fails
2) Many banks pay interest on the money you deposit into your savings account
3) Historically, savings accounts earn higher returns than investments in the stock market
4) Money in a checking account is usually easy to access via ATM, debit card or check

Answer 1

The statement that savings accounts historically earn higher returns than stock market investments is not true; savings accounts typically offer lower returns but are considered low risk with high liquidity.

Step-by-step explanation:

The statement among the provided options that is not true about bank accounts is: Historically, savings accounts earn higher returns than investments in the stock market. Savings accounts are known for their low risk and high liquidity, meaning that they provide easy access to funds and a safe place to keep money, typically insured by the FDIC up to certain limits. However, they generally offer lower returns compared to investments in the stock market, which can have potentially higher returns but also come with greater risks.