Which statement about savings accounts is true?

Savings accounts are indeed insured by the FDIC, which stands for the Federal Deposit Insurance Corporation. This insurance protects depositors by covering their funds up to $250,000 per depositor, per insured bank, in the event of a bank failure. This insurance adds a significant layer of security for individuals who save their money in these accounts, making them a reliable choice for managing funds that need to be easily accessible while still earning interest.

The other options do not accurately describe the nature of savings accounts. For instance, savings accounts typically offer lower interest rates compared to other investment vehicles; they are not designed for high returns. Additionally, they do not require a long-term commitment, as they allow account holders to deposit and withdraw funds relatively freely. Lastly, while savings accounts primarily hold cash, they may also hold other liquid assets, but they are fundamentally intended for cash savings.