1. Banking: Managing your money Chapter 4 Part 2

2. Saving Accounts May save money for a specific purpose or just build to reserve for a rainy day, you may withdraw money at any time Most savings accounts come with a simple interest rate EX 4-3 Certificate of deposit (CD)- an account that earns a higher rate than a regular savings account

3. Certificate of Deposit (CD) CDs earn more than regular savings accounts because you commit to leaving your money in the bank for a certain time period, if you take money out before the time period is up, you will be penalized with a withdrawal fee. EX 4-6 Money Market Accounts- checking accounts that pay interest on the amount you have deposited in the account They allow you to take out money at anytime EX 4-7

4. Money Market Accounts Debit Card- is a plastic card that looks similar to a credit card that has your checking and savings on it ATM- automated teller machine When you purchase with a debit card, the money is taken out of your checking account immediately Outstanding check- a check that has not yet been returned to the bank for payment (like credit) EX 4-9

5. FDIC Insurance FDIC (Federal Deposit Insurance Corporation)- is an independent agency of the federal government, that keep the financial system in the U.S. stable. FDIC will ensure bank accounts for $250,000 Savings and Loan association- also called thrift and loan, offers savings accounts, CDs, and checking account services. Credit Unions- nonprofit cooperatives, they exist to serve their members