Types of Accounts: Savings vs Investment

Front

What is a Savings Account?

Back

The money kept or deposited and can be used when necessary.

Front

What is an Investment Account?

Back

The money used for a certain business that will give profit in the future.

Front

When can you withdraw from a Savings Account?

Back

Anytime.

Front

When can you withdraw from an Investment Account?

Back

Have a duration of time.

Front

What is the starting amount for a Savings Account?

Back

Low.

Front

What does the starting amount for an Investment Account depend on?

Back

Depends on the types of investment.

Front

What is the interest rate for a Savings Account?

Back

1% to 2% interest rate per annum.

Front

What is the profit rate for an Investment Account?

Back

Profit rate is usually 2% per annum.

Front

What is simple interest?

Back

An amount of money received by anyone who saves money in the bank within a period of time.

Front

What is compound interest?

Back

An interest received from the savings and interest collected each year.