What is the major difference between a savings deposit and a time deposit?
A)savings deposits are less liquid
B)savings deposits can usually be withdrawn on demand whereas time deposits may have a penalty for early withdrawal
C)savings deposits can be withdrawn by writing a check
D)savings deposits are not insured by the FDIC

Question

Quizplus · Accepted Answer

The major difference between a savings deposit and a time deposit is that savings deposits can usually be withdrawn on demand whereas time deposits may have a penalty for early withdrawal. Therefore, option B is the correct answer. Option A is incorrect because savings deposits are actually more liquid than time deposits. Option C is incorrect because both savings deposits and time deposits can be withdrawn by writing a check. Option D is completely false because both savings deposits and time deposits are insured by the FDIC up to a certain amount.

What Is the Major Difference Between a Savings Deposit and a Time