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Bank Investments
Bank investments are investments made by banks. They have savings accounts and money market accounts.
A savings account is an interest-bearing deposit held at a bank (according to Investopedia). These accounts are good for saving up for something that you can buy in a short amount of time. The interest generated is considered taxable income. Money market accounts are also interest-bearing and earn higher interest rates.
Certificate Deposit (CD)
A certificate deposit is a type of bank investment where you loan the bank money to earn higher interest than if you had a regular savings account. This only last for a certain amount of time. You can't take out the money at all during that time or you might get a penalty fee it'll lose interest. CDs are low-risk, low-reward.
Recommendation
Bank investments can both be good and bad. Some people might not recommend it because of how low rewarding it is and how low of an impact it is on your finances. I would recommend bank investments for beginners and people who don't want to put their money into something so complicated. Bank investments and certificate deposits are very straightforward and simple, although, after some time you should start putting your money in places with a higher return rate.
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