1. Saving Money Short Term

2. Banks make money by taking deposits and lending the money to other people at a higher interest rate Checking and savings accounts can be liquidated (changed into cash at any time) Checking and savings accounts will never pay high yields (returns on your money)

3. The more time you promise the bank that you will let them use your money, the higher the interest rate the bank will offer

4. Why do we save money? Car House Child’s education Retirement Home improvements

5. The worst thing to do is leave your money in a place where it does not earn any interest (like under your mattress!) Cash will lose between 1-3% of value every year

6. Checking Accounts Convenient Allowed to draw checks on the balance Little to no interest is paid Look into if a minimum balance is required Do you need a savings account with a minimum balance as well?

7. Savings Accounts Can take money out if necessary Does not get very good interest

8. Time Deposits CD (Certificate of Deposit) Promise the bank you will not withdraw the money before a set date Bank will give you a higher interest rate (usually one to two percentage points higher)

9. CDs Minimum deposit is required Can range from 30 days to 10 year increments When maturity date come- you can get the amount you invested plus accumulated interest Stiff penalties for early withdrawal or principal from a CD Can rollover the balance