A saver will usually earn the highest rate with which one of the following types of savings plans?

Question

Quizplus · Accepted Answer

Certificate of deposit (CD) usually offers higher interest rates than other savings plans because the saver agrees to leave the money untouched for a certain fixed period of time. This allows the financial institution to use the funds for longer-term investments, which can yield higher returns. Thus, a saver can earn a higher rate of return while taking on minimal risk with a CD. However, it is important to note that the saver may face penalties for early withdrawal from a CD.

A Saver Will Usually Earn the Highest Rate with Which