The Joneses have some money set aside for emergencies. The Joneses have $50,000 to invest right now. They would like to earn more interest on it, but require immediate access to it at all times. They would also like to invest in something that is not FDIC insured in order to make more money by taking more risk. They do not want to invest in stocks, bonds, or funds that are composed of stocks or bonds.

What type of savings tool would you recommend? Why?

A compound interest-earning account

Explanation:

Compounding interest refers to the actions of adding the earned interest to the principal amount at the end of a period.  The principal amount will increase at the beginning of every new period. An increase in the principal amount every new year means that the interest earned in that year will be higher than the previous season.

A compound interest-earning account will satisfy the Joneses investment requirement. The account will earn high interest due to the compounding effect. They will have access to the money anytime they require it as the account does not restrict withdrawals.