Lee is thinking about stashing some of his savings in a short-term investment, but he doesn’t want to invest if a minimum amount is required. Which is his BEST option?
-savings account
-money market account
-certificate of deposit
-treasury bills
Lee's best option would be a savings account. Savings accounts typically do not have a minimum deposit requirement and offer easy access to funds when needed. Money market accounts and certificates of deposit often have minimum deposit requirements, while treasury bills are typically purchased through brokerages and may also have minimum investment requirements.
Well, if Lee wants to stash his savings without being bothered by a minimum requirement, he might want to consider a savings account. Unlike some other options like a money market account or certificate of deposit, savings accounts typically don't have a minimum investment amount. Plus, they offer a great bonus feature: easy access to your money whenever you need it! So, let's hope Lee can stash his cash without any minimum investment monkey business!
Lee's best option would be a savings account. A savings account does not typically require a minimum amount to open and maintain the account. It offers a safe place to store savings while earning some interest. Money market accounts and certificate of deposits often have minimum requirements to open and maintain the account. Treasury bills, on the other hand, are short-term government bonds but typically require a minimum investment of $1,000. Therefore, a savings account would be the best choice for Lee if he does not want to invest a minimum amount.
To determine Lee's best option, we need to consider his requirement of not wanting to invest if a minimum amount is required. Let's go through each of the options:
1. Savings Account: A savings account typically does not have a minimum deposit requirement. Lee can start with any amount he wishes, making it a flexible option for short-term savings.
2. Money Market Account: Money market accounts may have minimum deposit requirements that can vary between financial institutions. Lee would need to research different options to find one without a minimum requirement.
3. Certificate of Deposit: Certificates of Deposit (CDs) generally have minimum deposit requirements. They are time-bound investments where money is locked in for a specified period, usually from a few months to several years. As Lee does not want to invest if a minimum amount is required, CDs may not be suitable.
4. Treasury Bills: Treasury bills are short-term government debt instruments with low default risk. They are typically sold in multiples of $1000. Since Lee does not want to invest if a minimum amount is required, purchasing Treasury bills might not be a feasible option.
Considering these factors, the best option for Lee would be a savings account since it offers flexibility and does not typically require a minimum deposit. However, he should review the terms and conditions of different financial institutions to ensure there are no hidden fees or requirements.