Personal Finance SECTION 5.2. Types of Savings Plans Regular Savings Accounts Certificates of...
-
Upload
bertha-merritt -
Category
Documents
-
view
216 -
download
3
Transcript of Personal Finance SECTION 5.2. Types of Savings Plans Regular Savings Accounts Certificates of...
Personal FinanceSECTION 5.2
Types of Savings Plans
Regular Savings Accounts
Certificates of Deposit
Money Market Accounts
U.S. Savings Bonds
Regular Savings Accounts
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.
CD Trade Offs
To get higher interest rate you must
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
Money Market Accounts
Savings account that requires a minimum balance and ears interest that varies from month to month.
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.
Evaluating Savings Plans
Rate of return
Compounding
Evaluating Savings Plans
Annual Percentage Yield
Evaluating Savings Plans
Inflation
Evaluating Savings Plans
Tax Considerations
Liquidity
Evaluation Savings Plans
Restrictions and Fees
Types of Checking Accounts
Regular Checking Account
Activity Accounts
Interest Earning Checking Accounts
Evaluating Checking Accounts
Restrictions
Fees and charges
Interest
Special Services