1. Advantages and Disadvantages of Investing

2. When you put your money into savings…  Interest rates – low  Risk – low Insured by the Federal Deposit Insurance Corporation (FDIC)  Liquidity – easy access to your money with some withdrawal restrictions

3. Savings Accounts  Basic savings accounts  Money Market Accounts (MMAs)  Certificates of Deposit (CDs)

4. Basic savings accounts  Very low interest rates  May have minimum balance and monthly service fee  Can deposit daily, limit on number of withdrawals  Can be linked to a checking account  FDIC insured

5. Money Market Accounts (MMAs) Combination of checking and savings account – limited number of checks per month Typically higher monthly fee, minimum balance requirement, and minimum opening deposit than basic savings accounts Tiered interest rates, the higher the balance the higher the rate FDIC Insured

6. Certificates of Deposit (CDs) Fixed amount of money for fixed maturity – For example for 3 months or 3 years Penalty is charged if money is withdrawn before maturity Interest rate locked in when you fund the CD, paid monthly or at maturity Can automatically renew FDIC Insured

7. Annual Percentage Yield (APY) Time CD

8. Savings Deposit To Do: Choose a reason to save your money. Fill out deposit slip. Select either basic savings account, MMA or CD. Calculate interest for one year given APY. Give three reasons why you picked that account type.