Jan wants to save a $2000 gift from her grandparents, and add $50 per month as emergency funds. She has narrowed her search for a savings account to 2 banks, Bank A and Bank B. Bank A pays a fixed rate of interest, and Bank B pays a variable rate, but both rates are currently the same. What advice would you give Jan about how to choose an account based upon her own needs?

Question

Mathematics

Kaylen

16 September, 20:11

Jan wants to save a $2000 gift from her grandparents, and add $50 per month as emergency funds. She has narrowed her search for a savings account to 2 banks, Bank A and Bank B. Bank A pays a fixed rate of interest, and Bank B pays a variable rate, but both rates are currently the same. What advice would you give Jan about how to choose an account based upon her own needs?

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Answers (2)

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Kyler Dean · Answer 1

B.

I and II

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Heidy Hurley · Answer 2

Jan wants to save a $2000 gift from her grandparents, and add $50 per month as emergency funds.

Bank A pays a fixed rate of interest, and Bank B pays a variable rate, but both rates are currently the same.

Based on her own needs, I would advice Jan to look out or few things like -

When you are expecting to save more money, you should prioritize about the interest rates as they will have an effect on your accounts and balance.

You should also look for the chargeable fee and services that are applied on that account as these make a big difference on the account when you have little balance. The type of interest (fixed or variable) does not matter that much. When you have more money in account then these fee looks negligible.