certificates of deposit have fluctuated over time. The high interest rates of the early 1980s are indicative of the

relatively high inflation rate in the United States at that time. Interest rates fluctuate with the business cycle,

typically increasing during expansions and decreasing during a recession. Note the steep decline in CD rates since

2008, the beginning of the Great Recession.

The great advantages of bank accounts are that financial investors have very easy access to their money, and

also money in bank accounts is extremely safe. In part, this safety arises because a bank account offers more

security than keeping a few thousand dollars in the toe of a sock in your underwear drawer. In addition, the

Federal Deposit Insurance Corporation (FDIC) protects the savings of the average person. Every bank is

required by law to pay a fee to the FDIC, based on the size of its deposits. Then, if a bank should go bankrupt
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