Which approach is discouraged when managing personal trust accounts?

Investing in bank-issued deposits at rates below the market can be discouraged because it does not optimize the potential returns for the beneficiaries of a personal trust account. Trust accounts are generally established to provide financial support and growth for beneficiaries over time, and settling for lower-than-market rates can hinder that objective.

In the context of trust management, it's important to maximize returns while balancing risk according to the trust's goals. By opting for lower-interest bank deposits, the trust may miss out on opportunities for greater growth available through other investment vehicles that align better with market conditions.

Practices such as employing diversified investment strategies, regularly reviewing investment performance, and seeking advice from external financial advisors are generally encouraged. These approaches contribute to a more prudent and proactive management style that aims to enhance the trust's value over time and ensure it meets its obligations to beneficiaries effectively.