Peggy needs to pay car insurance 2 times every year. She has divided the payment by 6 and saves that amount each month. Which account below is the best account in which to save this money?

Car insurance is a predictable expense that Peggy pays twice a year. By saving one-sixth of each payment every month, she sets aside money for an upcoming bill, so it belongs in an account for predictable expenses. A checking or savings account for other expenses is the best choice; retirement and college accounts have different purposes, and a coin jar is less suitable for safely holding the money.

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