What is the main drawback of a CD over a savings account? (1 point)
The interest rates are lower.
It is a loan, so you have to pay back the debt.
The money is less safe.
Your money is tied up for a specific amount of time.
Your money is tied up for a specific amount of time.
The main drawback of a CD (Certificate of Deposit) over a savings account is that your money is tied up for a specific amount of time.
The main drawback of a Certificate of Deposit (CD) compared to a savings account is that your money is tied up for a specific amount of time. In order to get the most out of a CD, you need to leave your money untouched for the predetermined term, which can range from a few months to several years. This means that you cannot easily access your funds whenever you need them, unlike with a savings account where you have more flexibility to withdraw your money at any time.
