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Vincent has set a financial goal to purchase a home in five years. He wants a two-bedroom house with a small backyard in the north side of the city. He has $5,000 currently in his savings account. If he doesn’t deposit or withdraw any money, what type of savings account or savings bond should he choose? Keep in mind that he wants to have the most money in his account at the end of five years.
Using the scenario above, what type of savings account or savings bond should Vincent choose?

Respuesta :

Vincent should get a CD savings account

Answer:

A CD or a Series I savings bond will offer a term investment that can be reinvested annually for five years. When inflation is extremely low, the Series I savings bond may not be ideal. A money market may also offer the ability to spend the money in five years, but check the restrictions before opening it to ensure there are no penalties for closing it in five years.

Explanation:

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