2. Ms. Smith

3.  A safe and easy way to save your money.  Allows you to deposit money (add money to your account) or withdraw money (remove money from your account) at any time.

4. 1. Pick a bank. 2. Then, go to the bank and fill out the necessary paperwork needed to open a savings account. 3. After completing the forms, you will need to deposit a minimum amount of money. *For minors, the usual amount is at least $50.00. 4. Congratulations…now it’s time to start saving!!!

7.  Steven Jones:  122 Yosemite Street, Hamilton, NJ 08620  Account #264256971  On February 20, 2013, Steven Jones deposits the following:  $150 in cash  2.75 in coins  Check #132: 125.35  Check #1602: 395.00  On March 1, 2013, Steven Jones withdrawals the following:  215.00 in cash

8.  In return for keeping your money at the bank, the bank pays you money, also known as interest.  Compound Interest : interest that is calculated on both the amount you have on deposit and interest that has accumulated in the past.

9. Which would you rather have: a $100 bill or a penny that doubles everyday for 30 days?

10. If you have a penny that doubles everyday for 30 days, how much will you have?  Working with a partner, calculate how much this amounts to!  Formula: .01 x 2 = #, # x 2, and so on  5.4 million

11.  Bank Savings Account: offered by all banks; yield a low interest rate.  Money Market Account: offered by banks and typically pays you a higher interest rate than a regular savings account, but requires higher deposit.  CD or Certificate of Deposit: bank holds your money for a set period of time, usually 1-6 months or 1-5 years.  Unlike a normal savings account, you may not withdraw your money at any time. But if you do, you will be subject to withdrawal fees.  U.S. Savings Bond: initial investment of money, that if kept long enough, matures with interest.

12. Now that we know about the 4 types of savings accounts, how do we decide what’s the best choice for ourselves???

13.  Pros:  Low minimum balance required  Easy to withdrawal funds  Insured  Cons:  Low rate of return (current rates are below 1%)  Withdrawal charges

14.  Pros:  Highest interest rates among all other bank savings accounts  Check writing involved  Insured  Cons:  Minimum deposit/ balance required is high  No interest and possible service charge if balance is below a certain balance

15.  Pros:  Interest rates are better than that of a regular savings  Guaranteed interest rate for time of CD  Insured  Cons:  Penalty for early withdrawal  Larger sum of money required for minimum deposit

16.  Pros:  Low minimum deposit ($25 is the minimum amount)  Guaranteed by the government  Free from state and local taxes  Cons:  Length of maturity  Lower rate of return when cashed in before bond reaches maturity date