Which type of account would best serve a local fire district looking for a higher interest rate with no access to funds for 36 months?

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A certificate of deposit (CD) is the most suitable choice for a local fire district seeking a higher interest rate while also being comfortable with not having access to their funds for 36 months. CDs typically offer higher interest rates compared to other account types because they require the depositor to lock their money away for a fixed term, which aligns perfectly with the fire district's need for a vehicle that doesn't allow for withdrawals for an extended period.

By choosing a CD, the fire district can benefit from the guaranteed interest rate over the specified term, ensuring that their funds grow without the risk of withdrawal. This is particularly valuable for organizations that have designated funds to set aside for future expenses and do not require immediate access to their cash.

In contrast, business checking accounts usually provide lower interest rates and allow for easy access to funds, which does not meet the fire district's requirement for limited accessibility. Concentration accounts are often used for managing multiple accounts or cash flows but are not designed for higher interest earnings over a set term. Money market deposit accounts can offer better interest rates than regular checking accounts and may provide some access to funds, which would not satisfy the fire district's need for a complete lack of access for 36 months.

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