Savings products are the
most popular products offered by banks. Most adults
in the United States avail themselves of at least one
of these products: savings accounts, certificates of
deposit, and/or money market accounts.
Access the following pages:
http://www.themint.org/investing/savings.php
http://www.themint.org/investing/certificate.php
http://www.themint.org/investing/bankmoneymarket.php
Explain your answers to the following questions:
- What are three reasons savings accounts are among
the most popular banking services?
- How does compound interest help increase the savings
of bank customers?
- How does the “rule of 72” help explain
the potential growth of money that is saved?
- How is a certificate of deposit (CD) different from
a basic savings account? What are the advantages of
a CD over a basic savings account? What are the disadvantages?
- How is a bank money market account different from
a basic savings account or a CD? What are the advantages
and disadvantages of a bank money market account over
a basic savings account or a CD?
- If you wanted to deposit money in a bank, which
type of account would you open -- a basic savings
account, a CD, or a money market account?
|
