2.04BM Savings Accounts

Instrukcije

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How would you describe the overall savings trend in the U.S. from June 2015 to February 2020?

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The savings rate increased every year at some point between December and February. Hypothesize why this might be.

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Why did the savings rate increase after February 2020? What do you think accounts for the spikes in the personal savings rate in March 2020 and January 2021?

VIDEO: What's the Difference Between Checking & Savings? 📷4 min

You may be tempted to think you’re all set once you have a checking account, but it’s important to have a savings account, too. Why do you need both? Watch this video about the differences between checking and savings accounts. Then, answer the questions.

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What are the main differences between a checking and savings account?

VIDEO: Compound Interest Explained 📷4 min Albert Einstein once called compound interest the eighth wonder of the world! It’s a powerful tool for helping your savings account grow. What is compound interest? How can you use it to increase your savings? Watch the video. Then, answer the questions.

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How does the age that a person starts saving impact the amount they can earn in compound interest?

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Ben is comparing savings accounts at different banks and finds that most are offering an interest rate of about 1%. How does this low interest rate impact the power of compounding?

ARTICLE: Finances 101: Tips on Opening a Savings Account 📷5 min Now that we know about the difference between checking accounts and savings accounts and why savings accounts are useful, it’s time to pick one! Read this brief article about selecting a savings account. Then, answer the questions.

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What saving account features does the article recommend inquiring about?

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What account fees should you avoid with savings accounts?

ACTIVITY: COMPARE: Types of Saving Accounts 📷30 min There are a lot of different types of saving accounts. Let’s take a deep dive into these accounts and when they’ll be most beneficial for you. Follow the directions on the worksheet to complete this activity.

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Fill out the chart in your notebook as each group presents in class:

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Which of the following is typically a feature of a savings account but not a checking account?
1. Ability to withdraw money from an ATM
2. FDIC insured up to $250,000
3. Your money earns interest
4. Ease of making payments using a debit card

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Tyreke has $5,000 to put into an account that earns compound interest. Which of the following is the BEST advice you can offer so that he can maximize interest?
1. It’s ok to open an account with a low interest rates as long as you deposit your money early
2. Deposit your money as early as possible in an account with the highest interest rate possible
3. Wait for interest rates to rise above 5%, otherwise compounding doesn’t have any effect
4. Compound interest will not have any effect at such a low dollar amount. Find different opportunities to earn interest on your savings.

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Which of the following is TRUE when comparing savings accounts and certificates of deposit?
Savings accounts are FDIC insured while certificates of deposit are not
Savings accounts allow you to access your money at all times while certificates of deposit require your money to be left alone for a set period of time
Savings accounts typically have a higher interest rate than certificates of deposit
Both savings accounts and certificates of deposit allow you to deposit money at any time

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2.04BM Savings Accounts

How would you describe the overall savings trend in the U.S. from June 2015 to February 2020?

The savings rate increased every year at some point between December and February. Hypothesize why this might be.

Why did the savings rate increase after February 2020? What do you think accounts for the spikes in the personal savings rate in March 2020 and January 2021?

VIDEO: What's the Difference Between Checking & Savings? 📷4 min

What are the main differences between a checking and savings account?

How does the age that a person starts saving impact the amount they can earn in compound interest?

Ben is comparing savings accounts at different banks and finds that most are offering an interest rate of about 1%. How does this low interest rate impact the power of compounding?

What saving account features does the article recommend inquiring about?

What account fees should you avoid with savings accounts?

Which of the following is typically a feature of a savings account but not a checking account?1. Ability to withdraw money from an ATM2. FDIC insured up to $250,0003. Your money earns interest4. Ease of making payments using a debit card

How would you describe the overall savings trend in the U.S. from June 2015 to February 2020?

The savings rate increased every year at some point between December and February. Hypothesize why this might be.

Why did the savings rate increase after February 2020? What do you think accounts for the spikes in the personal savings rate in March 2020 and January 2021?

VIDEO: What's the Difference Between Checking & Savings? 📷4 min

What are the main differences between a checking and savings account?

How does the age that a person starts saving impact the amount they can earn in compound interest?

Ben is comparing savings accounts at different banks and finds that most are offering an interest rate of about 1%. How does this low interest rate impact the power of compounding?

What saving account features does the article recommend inquiring about?

What account fees should you avoid with savings accounts?

Which of the following is typically a feature of a savings account but not a checking account?1. Ability to withdraw money from an ATM2. FDIC insured up to $250,0003. Your money earns interest4. Ease of making payments using a debit card

Which of the following is typically a feature of a savings account but not a checking account?
1. Ability to withdraw money from an ATM
2. FDIC insured up to $250,000
3. Your money earns interest
4. Ease of making payments using a debit card

Which of the following is typically a feature of a savings account but not a checking account?
1. Ability to withdraw money from an ATM
2. FDIC insured up to $250,000
3. Your money earns interest
4. Ease of making payments using a debit card