Savings and Finances
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Savings Options, Features, and Plans
Savings Options
Regular Savings Account
An account with low interest, but high liquidity.
Liquidity: the ability of an asset to be converted into cash quickly.
Some institutions charge fees when you make more than a maximum number of withdrawals in a certain period of time.
Good points: liquidity
Bad points: low interest
Certificate of Deposit
A deposit that earns a fixed interest rate for a specified length of time.
The interest rates are higher due to less liquidity.
The maturity date is the date on which an investment becomes due for payment. If the CD isn't collected within so many days after the maturity date, it is renewed as a CD again.
Good points: high interest
Bad points: low liquidity
Money Market Account
A combination savings-investment plan.
Money can be deposited and withdrawn from the account at any time without a fee. Thus, making it liquid...