Choosing a Savings Account

It is never too early to start saving your money. Each payday when you put money into your checking account you should get into the habit of adding a little to your savings. In no time your wealth will begin to grow.

Activity 1 - Why Save Money?

Preparing to open a savings account involves looking at your strategies and goals for the future.
View the video "How to Save Money"

dollar_sign.jpgAssignment A:
When you have finished viewing the videos and visiting web sites, you will complete question 1-4 on the Choosing a Savings Account study guide. You may have to view the video several times to answer the questions.

You will use this study guide throughout this lesson. In order to write on the study guide you will have to make a copy of the file in Google Docs. Rename the file so that it contains your name and use Actions menu to place the file in your Personal Finance folder.

Why Save Money

Short Term Goals

Long Term Goals

Financial Institutions
Banks are not the only depository or financial institution where you can save your money. At this site you will explore all the different types. New York State Dept. of Financial Services.

Activity 2 - How Do Savings Accounts Work

Earning interest is one of the main reasons to put money into a savings account. Where does the interest come from?
Go to the following link How Does Interest Work.

dollar_sign.jpgAssignment B:
Read the information from the link "How Does Interest Work" above and watch the video there. Also browse through this link on the FDIC then answer questions 5-14 on the study guide.

Activity 3 - Understanding Compounding Effect on Interest.

When you open a savings account one of the questions you will need to ask is whether or not the interest is compounded and how often it is applied to your principle. When interest is compounded it you are actually earning interest not only on the money you have deposited, but also on the interest earned.

dollar_sign.jpgAssignment C:
Visit this web site and watch the video on Compounding Interest. Understanding Compounding Interest
Answer questions 15-18 on the study guide.

Activity 4 - Choosing the Right Savings account for You

Just like checking accounts, banks offer many different types of savings accounts. Once again you will have to do a little homework to explore each type of account before opening one at your bank. View the following video for some "Tips on Choosing a Savings account"

dollar_sign.jpgAssignment D:
Answer questions 19-20 on the study guide.

Activity 5 - Where to open a savings account?

There are many factors you will need to consider when choosing the right place to open your savings account.

dollar_sign.jpgAssignment: E -
View the following video and read the information from the link "FDIC" and answer questions 21-23 on the study guide.

Where to Open a Savings Account by 5minBusiness

Activity 6 - Types of Savings Accounts.
Just like checking accounts, banks offer many different types of savings accounts for their customers. Each type of account is different. Most are available at every bank. These are listed below in Assignment F.

dollar_sign.jpgAssignment: F -
Explore the different types of savings accounts listed below. Answer questions 24-43 on the study guide.

Activity 7 - What Are the Interest Rates at Your Bank

Now it is time to check out the interest rates at your bank. Go back to the Choosing a Checking Account section of this Wikispace. Click the link to the bank that you choose to open your checking account.

dollar_sign.jpgAssignment G -
At the bank's web site for the bank you chose in Assignment B-1 in the "Choosing A Checking Account" activity, locate their current interest rates for each of the different savings accounts listed on the study guide.

You have completed the lesson on Choosing a Savings Account. Make sure you have completed all of the questions on the Study Guide. Print your study guide and place it in the "Drop Box".