Which savings option would be most suitable for someone like Keira, who is new to saving and has limited funds?

A savings account is the most suitable option for someone like Keira, who is new to saving and has limited funds. This type of account typically requires a low minimum balance and offers easy access to funds without penalties for withdrawals. Savings accounts generally have lower interest rates compared to other options, but they provide a safe place to grow money gradually while building the habit of saving.

For beginners, savings accounts are ideal because they offer liquidity and a straightforward way to manage finances without the complexities associated with investments or locking funds away for extended periods, as would be the case with a Certificate of Deposit or a retirement account. Therefore, a savings account serves as an excellent first step for someone just starting their financial journey.

Investment accounts, while potentially offering higher returns, can be riskier and often require a more substantial understanding of the market. Similarly, a Certificate of Deposit ties funds up for a fixed term, which may not suit someone who needs easy access to their savings. A retirement account, on the other hand, is geared toward long-term savings and may not be appropriate for an individual with immediate financial needs.