Why Save??? for the unexpected for opportunities for major purchases for flexibility for goals Things to consider when saving… Interest rate Fees and restrictions

Strategies for Saving Pay your self first!!!!!!!!!!!!!!! Save by the numbers…use a % What is your opportunity cost when saving? Opportunity cost is what you give up in order to have something else, or in this case save for something else. Savings Options CD- Certificate of Deposit Money Market Bonds

When You Open a Savings Account You deposit money in the account. You deposit money in the account. You can add or take out money at any time. You can add or take out money at any time. The savings institution is allowed to use your money to invest and earn a profit. The savings institution is allowed to use your money to invest and earn a profit. You are paid a small amount of interest for depositing your money. You are paid a small amount of interest for depositing your money. Your money is insured against loss Your money is insured against loss

CD- Certificate of Deposit – Similar to savings accounts in that they are insured and thus virtually risk-free; they are "money in the bank“. – CD has a specific, fixed term (often three months, six months, or one to five years), and, usually, a fixed interest rate. – It is intended that the CD be held until maturity, at which time the money may be withdrawn together with the accrued interest.

Money Market A money market account is considered a safe investment but with a higher yield than a normal savings account. The high yield is generated by a chain of investments. You and many other clients invest in separate accounts with the bank. APY- Annual percentage yield is the interest rate an account pays per year.

Bonds Is a written promise to pay a debt by a specific date. When you buy a bond the government owes you that money plus interest. Usually issued for a specific time.