alleryStart learning →What does the sponsoring organization contribute in a matched savings account?
AIt adds money to match your savings
BIt lends money against your savings
CIt insures your savings up to a cap
DIt taxes your savings once each year
Answer & Solution
Correct answer: A. It adds money to match your savings
1. Matched savings accounts encourage saving toward a named purpose such as job training or a home.
2. They are usually run by local community based organizations.
3. The organization matches what the saver puts in, adding money alongside it.
4. Individual Development Accounts and Children's Savings Accounts are examples of the form.
5. Lending against savings would create debt rather than add to the balance.
_Source: FDIC Money Smart for Adults (September 2018), Module 5: Your Savings, section Special Accounts and Public Benefits_
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