The type of savings account that will be best for Tamara is the Certificate of Deposit.
Tamara will have to agree with a financial institution to deposit her money for a fixed period so that she can earn the most possible interest. Tamara is at liberty to determine how long she’s willing to invest.
She can decide to save the money for three months, one year or ten years. However, since Tamara will have to save her money for a full year, then she will get a higher interest rate for saving for a longer time. This also implies that Tamara is borrowing the bank her money and she will receive interest.
A certificate of agreement is a product that is provided by financial institutions such as credit unions and banks. It is a product that gives interest rates when customers agree to save their money for a longer period without touching it.
This product is offered by nearly all financial institutions and these financial institutions use their discretion to determine the terms of the certificate of deposits.
Tamara won’t have to be scared of using this product, because her money is safe and it offers a high-interest rate.
LEARN MORE:
KEYWORDS:
