Savings account and Interest

What are 2 reasons to keep your money in a bank?

• Its safe

  (will not be lost, stolen, or thrown out)

• Gains interest

• So you don't have to pay penalties

What is a CD in terms of savings accounts?

• Compact Disc

• Certificate of Deposit

• Certified Directory

What is interest calculated in?

• Annual Percentage Yield (%)

• Dollars earned ($)

• Decimals (.)

Interest earned on both the principal and any interest earned on the principal.

• Rate of return

• Compound interest

• Simple interest

• Principal earnings

What is a good strategy to help you save?

• 1st, spend money on all expenses; put the rest into saving
• Tap into your savings on a regular basis

• Pay yourself first - set aside money for savings each month
• Keep your spending and saving money together in 1 account

What are savings accounts best for?

• Spending money frequently.

• Stashing cash.

• Online shopping.

• Direct deposit of paychecks.

What are savings accounts best for?

• Spending money frequently.

• Stashing cash.

• Online shopping.

• Direct deposit of paychecks.

Up to what amount are deposit accounts federally insured per depositor at most banks and credit unions?

• $100,000

• $250,000

• $500,000

• $1,000,000

This mysterious hand went to the mall and saw a massage chair that he would have to take a loan out to purchase. The total of the loan was $6600. The bank said that he could get a simple interest rate of 8% for 5 years. What is the total amount that the mysterious hand will pay for the chair?

• $2600

• $924

• $9240

• $260

Alexton the Skeleton borrowed $4,000 for 5 years at 6% simple interest rate to pay for his band equipment. How much interest is that?

• $800

• $1,000

• $1,200

• $1,500