Which of the following are reasons for putting money into a CD (certificate of deposit)?
A)To earn a higher rate of interest on your savings than would typically be earned if savings were placed in one's checking account or standard savings account
B)To establish a solid savings foundation if you are not going to use the money for a longer period of time
C)To have a safe place to store savings while still being able to make frequent withdrawals from the account penalty-free
D)Both to earn more interest and to put money you don't plan to use in the short-term to work

Question

Quizplus · Accepted Answer

CDs typically offer higher interest rates than standard savings accounts or checking accounts, and they are a good choice for funds that you don't plan to use in the short-term. Additionally, the longer the term of the CD, the higher the interest rate typically offered by the bank.

Which of the Following Are Reasons for Putting Money into a CD