Ms. Smith

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. 

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!!!

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

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.

Which would you rather have: a $100 bill or a penny that doubles

everyday for 30 days?

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

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.

Now that we know about the 4 types of

savings accounts, how do we decide what’s the

best choice for ourselves???

Pros: Low minimum balance

required Easy to withdrawal

funds Insured

Cons: Low rate of return

(current rates are below 1%)

Withdrawal charges

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

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

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