Beth and Mark would like to put some savings in the bank. They most likely will not need this money for 4 years, so Beth wants to put it in a four-year CD. Mark wants to put the money in a passbook savings account. What is NOT an advantage of a CD? * O Maturity dates can range from 7 days to 10 years. Typically, the longer the term is, the higher the interest rate. guarantees the payment of a fixed interest rate until maturity You cannot make deposits to or withdrawals from without a penalty.

Beth and Mark would like to put some savings in the bank. They most likely will not need this money for 4 years, so Beth wants to put it in a 4-year CD. Mark wants to put the money in a savings account. What is the advantage of a CD? What is the disadvantage.

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The disadvantage of Cd are that Cd has a penalties if money is withdrawn before maturity, and the advantage of CD is that Cd have higest interest rate.

briannalebeaux briannalebeaux · Answer 2 · 2021-09-16T18:54:59+02:00

briannalebeaux briannalebeaux

16-09-2021

Answer:

Quite often, the CD will earn more interest—even if you have to pay a penalty for early withdrawal.

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For example, my local credit union offers 0.10% interest on passbook savings and 1.46% interest on a 4-year CD. One of my local banks offers 0.01% interest on passbook savings, and 0.60% on a 4-year CD.

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