What defines the Investable Balance in a savings account?

The Investable Balance in a savings account refers to the funds that are immediately available for investment or distribution, taking into account any obligations tied to that balance. In this context, the correct choice is the account balance minus insurance premiums.

This reflects the concept that an Investable Balance is not simply the total amount in an account but is adjusted for certain liabilities or deductions that affect the liquid availability of those funds. By excluding elements such as insurance premiums—expenses that may reduce the usable amount—you arrive at a figure that can be utilized for investments or other financial activities.

Although other aspects, like fees or withdrawal penalties, can impact account balances, they do not specifically define the Investable Balance as effectively as considering established liabilities like insurance premiums, which directly influence how much of the balance is actively available. Thus, the definition captures the nuances of what's available for use versus what's tied up in account maintenance or associated costs.