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Janelle likes to keep all her savings goals separate, so she has an account for each one, including an account to save for her college textbooks every semester. She buys books about every 6 months, with roughly $550 due each time. She likes to save the money up in installments, with auto-deposits from each of her twice monthly paychecks. She’s wondering if her online savings account, earning 0.75%, is still her best option for monthly deposits toward her textbooks. Which account would you recommend? Why?

Respuesta :

anthougo

The account that I recommend for Janelle for saving towards her textbooks, which she buys every six months, is a Certificate of Deposit.

What is a Certificate of Deposit?

A certificate of deposit is a fixed deposit account offered by banks and other financial institutions.

The advantage of a certificate of deposit over an ordinary saving is that it has a fixed interest rate and the rate is premium, that is higher than the ordinary savings account's interest rate.

Thus, since Janelle does not require the amount until six months, it would be better for her to choose a certificate of deposit that will earn a higher interest.

Learn more about certificates of deposit at https://brainly.com/question/1874937

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