Answer:
1. Basic bank savings account.
2. Club account.
3. Checking account.
4. 529 plan.
5. CD
Explanation:
Savings can be defined as the amount of money left after removing expenses and other costs.
Investments are costs associated with purchasing of capital assets and investments of cash resources in other businesses.
1. Basic bank savings account: it's a deposit account that offers an account holder a low interest rate, checkbooks aren't issued, and the holder is posed with few restrictions on access to his or her money.
2. Club account: it's an account used to save money for a specific purpose or special reason such as vacation, tourism, college, etc.
3. Checking account: it's a type of deposit account that is designed to make it convenient for the holder to pay bills easily.
4. 529 plan: a 529 plan is a tax-free savings account which avails an individual or account holder (sponsor) to make payment in advance with respect to educational expenses that would be incurred by a student (beneficiary) in the future. This plan is mainly sponsored by state agencies or the state itself and it is authorized by Section 529 of the Internal Revenue Code and mainly sponsored by the states to encourage savings for future educational costs.
5. Certificate of deposit (CD) can be defined as a secured form of time-bound deposit and a special low-risk savings account, wherein money (lump-sum) are left with the bank for a specific period of time in exchange for an interest rate premium.
Generally, a certificate of deposit pays a higher interest rate to its holder than the regular savings account because the banks invest the money in a business.
Additionally, the bank certificate of deposit is protected and insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000.
