Question

Which type of account will typically have the highest interest rate?
A Money Market Account
B Certificate of Deposit (CD)
C Checking Account
D Savings Account

Answer 1

According to the options, the account with the highest interest rate is option B Deposit Certificate because it is a type of deposit in which the clients leave their money in the institution (the bank) for a fixed period of time and the institutions generally grant higher interest rates than accounts in which customers can withdraw their money at anytime.

The certificate of deposit is similar to the savings account.