1. Lesson 9.3 Low Risk Investments July 2011Copyright © 2007-2011 … REMTECH, inc … All Rights Reserved1 Introduction The probability you will lose money in a low-risk investment is low Low-risk investments are excellent for holding money for short periods of time There are many types of low-risk investments. Low-risk investments are not considered good investments for reaching long-term financial goals Most low-risk investments have a high level of liquidity

2. Lesson 9.3 Low Risk Investments July 2011Copyright © 2007-2011 … REMTECH, inc … All Rights Reserved2 Objectives You should be able to do the following after completing this lesson. Explain what a deposit account is and provide examples Identify where you would open a savings account Indicate whether the FDIC insures savings accounts Discuss the typical interest rate for a savings account Conclude whether a home is a good, low-risk, long-term investment Identify the largest investment most people will ever make Summarize why money market accounts are considered safe, low-risk investments Define investment, deposit account, savings account, money market account, time deposit and other key terms introduced in this lesson

3. Lesson 9.3 Low Risk Investments July 2011Copyright © 2007-2011 … REMTECH, inc … All Rights Reserved3 9.3.1 – Deposit Accounts Where you can open deposit accounts The different types of deposit accounts available today What deposit accounts are good for In this section, you will learn Why some deposit accounts don’t pay you interest What deposit accounts are not good for What benefits deposit accounts offer you

4. Lesson 9.3 Low Risk Investments July 2011Copyright © 2007-2011 … REMTECH, inc … All Rights Reserved4 9.3.2 – Savings Accounts What savings accounts are How to open a savings account What the interest rate on savings accounts is In this section, you will learn If savings accounts are FDIC-insured Why you should have a savings account

5. Lesson 9.3 Low Risk Investments July 2011Copyright © 2007-2011 … REMTECH, inc … All Rights Reserved5 9.3.3 – Money Market Accounts What a money market account is and who offers them How the interest rate for money market accounts is determined How money market accounts and savings accounts compare If money market accounts are FDIC-insured In this section, you will learn How liquid money market accounts are What the money in a money market account is used for

6. Lesson 9.3 Low Risk Investments July 2011Copyright © 2007-2011 … REMTECH, inc … All Rights Reserved6 9.3.4 – CDs and T-Bills What a CD and T-Bill is Why people invest in CDs and T-Bills Whether these investment are FDIC-insured How liquid these investments are In this section, you will learn What type of interest rate do these investments pay Comparing Low-Risk Options Example You will run the following Interactive Example

7. Lesson 9.3 Low Risk Investments July 2011Copyright © 2007-2011 … REMTECH, inc … All Rights Reserved7 9.3.5 – Real Estate Whether homes produce a good rate of return How many people own a home today In this section, you will learn The tax advantages of owning a home Why homes don’t always increase in value Whether you should consider a home as a possible future investment Why a home is considered an investment

8. Lesson 9.3 Low Risk Investments July 2011Copyright © 2007-2011 … REMTECH, inc … All Rights Reserved8 Discussion Questions Are US Savings Bonds and Municipal Bonds considered safe, low-risk investments? Considering all the turmoil in the housing market, is it really a good idea to purchase a home now?