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Savings Tools

Savings Tools. Advanced Level. Types of Savings Tools. Ideal for Storing Emergency Savings. Insured depository institutions offer accounts which are:. How will a consumer know if their depository institution offers secure accounts?. Savings Tools Characteristics.

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Savings Tools

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  1. Savings Tools Advanced Level

  2. Types of Savings Tools

  3. Ideal for Storing Emergency Savings Insured depository institutions offer accounts which are: How will a consumer know if their depository institution offers secure accounts?

  4. Savings Tools Characteristics Each savings tool has different characteristics Goal: Determine the savings tool most appropriate for reaching a financial goal

  5. Checking Account What are common ways to access funds in a checking account?

  6. Checking Account Features

  7. Savings Account What are common ways to access funds in a savings account?

  8. Savings Account Features

  9. Money Market Account Which would typically earn a higher interest rate? An account with a $10,000 balance or a $2,500 balance?

  10. Money Market Account Features

  11. Certificate of Deposit (CD) Why would a depository institution typically offer higher interest rates for CD’s with a longer time period or more money invested?

  12. Certificate of Deposit Features

  13. Matching Savings Tools to Goals Consider these factors when determining the most appropriate savings tool for your financial goal

  14. You Decide: Which Tool is Best?

  15. Terms and conditions such as interest rates, fees, and minimum balance requirements may vary. Analyze the features of a savings tool among depository institutions

  16. Liquidity Least Liquid/Highest Interest Most Liquid/Lowest Interest Higher interest rates are a trade-off for lower liquidity Money Market Deposit Account Checking Account Savings Account Certificate of Deposit

  17. Summary Understand the features of savings tools to select the most appropriate tool for each financial goal

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