Savings Accounts Erica Schall, Priscilla Kirk, Alex Krueger, and Jake Flowers

StrategyWhat is it?Whats the risk?What are the pros?What are the cons? Certificate of Deposit (CD) Savings certificate issued by a bank or credit union Minimal risk because it is insured by the Federal Deposit Insurance Corporation through a bank and the National Credit Union Share Insurance Fund through a credit union. Higher interest rate than a traditional saving Not risky The longer the term, the higher the interest you usually earn. Must be left in the bank for a fixed amount of time. Steep Penalties for withdrawing money early. Minimum balances required. Savings AccountA deposit account that interest and is issued by a bank or credit union. Minimal risk because it is FDIC or NCUSIF insured. Not risky No restrictions on withdrawals Low or no minimum balances required Lowest interest rates Some banks charge fees for opening and maintaining accounts

StrategyWhat is it?What’s the risk?What are the pros?What are the cons? Money Market Account A type of checking account issued by a bank or credit union to hold your money Minimal risk because it is FDIC or NCUSIF insured - Higher interest rates than a savings account - Can withdraw money (with some restrictions) - Higher minimum balance required - Some withdrawal restrictions (ex. Limits on number of withdrawals per month) - Subject to fees if balance below certain amount Retirement Account An account such as an IRA and 401(k) that helps you set aside money for retirement Investment choices range from very secure government bonds to higher risk stocks - Tax-deferred growth - Some employers will match contributions - Helps create long- term savings - Steep penalties for withdrawing money before retirement - Contribution limits

Compare 3 Banks Bank of AmericaBank First NationalWells Fargo Bank ●Interest rates for normal savings account: 0.87% ●Money Market account: 0.85% ●No Monthly fees ●CD accounts have 0.12% rates and $25 minimum deposit. ●Saving accounts have $100 minimum opening fee except minors. ●Interest rates for savings and money markets is %3. ●Interest rates for saving accounts and and money market accounts are the same as bank of america’s rates. ●$5 monthly fees. ●CD accounts have a $500 minimum opening account

Bank -Insured by the Federal Deposit Insurance Corporation (FDIC) -United States government corporation that provides deposit insurance guaranteeing the safety of a depositor's account up to $250,000 -Insured by the National Credit Union Administration (NCUA) -Independent federal agency created by the US Congress. (max share $250,000) -You don’t open an account-- you become a member and use your deposits to buy shares in businesses. Credit Unions VS

Bank -Make loans, pay checks, accepts deposits, and offers several banking services -You open accounts and can deposit money into them. -Governed by a board of directors chosen by stockholders. -Owned by it’s members. - Because of that they often charge lower fees than banks. -But because of that they also pay higher interest rates on savings accounts, money market accounts, interest checking accounts, and deposits. - Credit Unions VS

Bank -For-profit organization -The oldest bank in the world is the Monte dei Paschi di Siena, in Italy, which has been open since Non-profit organization -Profits are distributed back to their members -Offers personal loans or basic banking services -Members can run for a spot on the board. Credit Unions VS