You're Gonna Want to SAVE this!
By Dylan Shillcutt and Zach Littell
Savings Tools are secure and liquid accounts offered by depository institutions assisting in the management of a savings fund. Savings tools are secure because they are low risk, and backed by government insurance.
Interest Earning Checking Account
Tool used to transfer funds deposited in an account to make a cash purchase. Usually lowest available interest. The accessibility is most liquid(checks, ATMs, debit cards, phone, internet). The features are that most of the time there is a minimum balance transfer, transaction fees, check limit, and this reduces the need to carry around cash.
Account to hold money not spent on consumption. The interest is the lowest interest rates except more than checking account. The accessibility is more liquid than all except checking. The features of this are frequent deposits, money storage, requires a minimum balance or limited withdrawals.
Certificate of Deposit
This is a insured interest earning savings tool, restricted length of time. The interest depends on the time length and the amount of money deposited. The accessibility is less liquid than checking, savings, and money market. If you access the money before the time period is up, you will be charged. The features of a CD are that minimum deposits range from $100 to $250,000. These are low risk and there are no fees if the money isn't touched.
This is a discount bond purchased for 50% of face value from the United States government. The interest can be redeemed once the investment has doubled. The accessibility is the least liquid of all of the savings tools and access to money is restricted. The features of a savings bond are that they are safe, secure, and affordable. These can be purchased from $25.00 up to $10,000.
Federal Deposit Insurance Corporation (FDIC)
The FDIC is the most common type of government insurance, which is the federal government agency insuring against loss, $250,000 per account.