Which of the following statements about savings accounts is false?

A savings account is a type of deposit account offered by banks and other financial institutions where customers can deposit their money and earn interest on the balance.

Savings accounts are generally considered to be a safe and conservative way to save money, as they are insured by the Federal Deposit Insurance Corporation (FDIC) in the United States and other similar regulatory agencies in other countries.

Savings accounts typically offer a lower interest rate than other types of investments, such as stocks, bonds, or mutual funds, but they are also generally considered to be a low-risk way to save and grow money over time.

Withdrawals from savings accounts are generally more limited than other types of accounts, such as checking accounts, and may be subject to penalties or fees if certain conditions are not met.

Savings accounts are commonly used for short-term savings goals, such as building an emergency fund, saving for a down payment on a house, or planning for a vacation. They are also a good option for people who want to save money but want to keep their funds easily accessible and liquid.

Question

Which of the following statements about savings accounts is false?

A. Savings accounts may require you to maintain a minimum balance to avoid paying a fee.

B. Savings accounts are best used to store money for longer-term goals.

C. Savings accounts limit the number of withdrawals that can be made each month.

D. Savings accounts don't usually pay interest on the money you deposit.

Answer

Which of the following statements about savings accounts is false is savings accounts don't usually pay interest on the money you deposit. (D)

Explanation

"Savings accounts don't usually pay interest on the money you deposit" is false. Savings accounts typically pay interest on the money deposited, although the interest rates may vary depending on the financial institution and the type of account.

The purpose of a savings account is to provide a safe place to store and grow your money over time. By earning interest on the money deposited, savers can increase their savings and potentially earn passive income on their funds.

However, it is important to note that savings accounts generally offer lower interest rates than other types of investment accounts, such as certificates of deposit (CDs) or stocks and bonds.

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