QUESTION 5 / 10
Your sister is looking for a way to increase the amount of interest she is earning on her savings account.
What should she do?
A. Switch to a savings account with a lower interest rate.
B. Use the money from her savings account to open a
checking account instead.
C. Make monthly withdrawals from her savings account.
D. Deposit money into her savings account each month.

D. Deposit money into her savings account each month.

Explanation:

A savings account offers higher interest rates than a checking account. The savings account purpose is the provide a safe and convenient platform to accumulate funds either for short-term or long-term use. The account will have restrictions on the number of withdrawals per period.

Interest earned by savings accounts depends on the interest rate offered by the bank, the amount of savings, and the duration of savings. Since my sister cannot alter the interest rate, she can increase the interest earned by an increasing amount of deposits. Interest earned is a percentage of the savings or the principal amount. A higher deposit will earn her a higher interest. She can increase her savings and, subsequently, interest earned by depositing money into her savings account each month.

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