In which situation would a savings account be the best investment to earn interest?
A. When you need to make frequent payments for bills
B. When you have to pay monthly installments for a loan
C. When you need immediate access to cash
D. When you want to buy a new car in 3 years
Answer (2)
A savings account is best for earning interest when planning to buy a new car in 3 years, as it allows easy access to funds while earning interest over time. Other options, like paying bills or loan installments, are more suited for checking accounts. Overall, savings accounts are great for savings goals with a set timeframe. ;
The best situation to use a savings account for earning interest is when you want to buy a new car in 3 years. This allows you to earn interest while saving for a specific goal. In contrast, other options involve immediate cash needs better suited for checking accounts.
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