6. Savings accounts - Their features and fees A variety of different savings products are offered by financial institutions. Two of the most frequently sold savings investments are statement (or passbook) savings accounts and certificates of deposit (CDs). How do they differ? Read the following statements and classify each as to whether it applies to a statement savings account, a certificate of deposit, or both. Statement The account has no fixed maturity or end; if you maintain the minimum required balance in the account and the institution does not cease doing business, the account could earn interest over your entire lifetime. The account often earns a higher interest rate than the rate earned on NOW and share draft accounts. The interest rate can be either fixed or variable over the life of the account. The account offers you greater flexibility with regard to the frequency and number of deposits and withdrawals. If you withdraw your funds prior to the account's specified maturity, it is possible to end up with less money than you originally deposited. Certificate of Deposit 0 0 Statement Savings Account

A variety of different savings products are offered by financial institutions. Two of the most frequently sold savings investments are statement (or passbook) savings accounts and certificates of deposit (CDs). How do they differ? Read the following statements and classify each as to whether it applies to a statement savings account, a certificate of deposit, or both