Which of the following savings vehicles usually requires a high minimum balance?

a) simple savings account

b) Certificate of Deposit (CD)

c) Checking account

d) all of the above

Question

Xiomara Mullins

Business

24 February, 05:21

Which of the following savings vehicles usually requires a high minimum balance?

a) simple savings account

b) Certificate of Deposit (CD)

c) Checking account

d) all of the above

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Answers (1)

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Jayda Mack · Answer 1

Certificate of deposit (CD). A certificate of deposit is an investment vehicle whereby an investor's money is able to earn a higher rate of interest than a regular account. In this type of investment, the funds are 'locked in' for a predetermined period, often with a guaranteed rate of return. Some institutions allow investments as low as $100 but it is recommended to buy CDs of over $100,000 to $250,000 as this is the minimum amount that is insurable thus making the principle safe.

Which of the following savings vehicles usually requires a high minimum balance?a) simple savings accountb) Certificate of Deposit (CD)c) Checking accountd) all of the above

Which of the following savings vehicles usually requires a high minimum balance?

a) simple savings account

b) Certificate of Deposit (CD)

c) Checking account

d) all of the above