1. Personal Finance SECTION 5.2

2. Types of Savings Plans  Regular Savings Accounts  Certificates of Deposit  Money Market Accounts  U.S. Savings Bonds

3. Regular Savings Accounts

4. Certificate of Deposit (CD)  Savings alternative in which money is left on deposit for a stated period of time to earn a specific rate of return.  The period of time is called the term.  The date when the money becomes available to you is called the maturity date.  Low risk way to invest your money.

5. CD Trade Offs  To get higher interest rate you must

6. CD Investment Strategies  Find out where you can get the best rate  Considering the economy as you decide maturity date  You may want to buy a long-term CD if interest rates are relatively high

7. Money Market Accounts  Savings account that requires a minimum balance and ears interest that varies from month to month.

8. U.S. Savings Bonds  Are debt securities issued by the US Department of Treasury to help pay for the U.S. Government’s borrowing needs.

9. Evaluating Savings Plans  Rate of return  Compounding

10. Evaluating Savings Plans  Annual Percentage Yield

11. Evaluating Savings Plans  Inflation

12. Evaluating Savings Plans  Tax Considerations  Liquidity

13. Evaluation Savings Plans  Restrictions and Fees

14. Types of Checking Accounts  Regular Checking Account  Activity Accounts  Interest Earning Checking Accounts

15. Evaluating Checking Accounts  Restrictions  Fees and charges  Interest  Special Services