Types of Savings

Caleb Hall, Nick Cox, and Landon Perkins

Main Ideas: Ways to Save

Savings Account

This money can be withdrew at any time and interest is added automatically to your principal, the money that you initially deposit. Checks cannot be written out of a savings account. You can also open a savings&loans account or a credit union account, rather than a traditional savings account.

Checking Account

A checking account also gets money deposited into it like a savings account, but the difference is that checks can be written that sends money out of your account to your desired funds.

Money Market Fund

Similar to a checking account because you are allowed to write checks, but usually for larger amounts.

Certificate of Deposit

Banks require this money to be held for an agreeable amount of time for an agreeable interest rate, that is usually higher than an interest rate for a saving account. The interest grows the longer that it is in the account and banks are likely to reward a higher interest.

Important Vocabulary