You have $2,000 and want to invest in two savings goals: a short-term goal (less than one year) of saving for textbooks during your first year of community college, and a longer-term goal (over 1 year) of saving for a car when you graduate from college. Use the information in the chart below to explain how much you would choose to save for each goal, where you would save it, and why. When explaining your choices, be sure to consider the liquidity of each investment, the potential for interest earned, and any potential fees or penalties. Savings Account
0.09% APY
No minimum deposit

MMA
1.05% APY
$500 minimum deposit

24-Month CD
2.9% APY
$250 minimum deposit

US Savings Bonds (Series EE)
0.1%
$25 minimum purchase

$15 fees for
any withdrawals in
excess of 6 per month

$15 fees for
any withdrawals in
excess of 6 per month

Penalty for early
withdrawal is 3 months
of interest or $25,
whichever is greater

Cannot redeem during
first 12 months;
before five years,
loss of 3 months of interest