1 / 7

Savings Options, Features, & Plans

Savings Options, Features, & Plans. Chapter 10: Part 2 By Scott Feil 12/15/2005. Overview. Savings Options Selecting a Savings Plan Saving Regularly. Savings Options. Regular Savings Account High “Liquidity” You can turn it into cash easily and quickly with no (or little) loss of value

mackenzie
Download Presentation

Savings Options, Features, & Plans

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Savings Options, Features, & Plans Chapter 10: Part 2 By Scott Feil 12/15/2005

  2. Overview • Savings Options • Selecting a Savings Plan • Saving Regularly

  3. Savings Options • Regular Savings Account • High “Liquidity” • You can turn it into cash easily and quickly with no (or little) loss of value • You can withdraw and deposit at any time • Lower Interest • Usually the lowest of all savings options • (Except stuffing it in a mattress)

  4. Savings Options, cont. • Certificate of Deposit (CD) • Deposit money for a fixed length of time • Must be at least a certain amount • If you take it out early you will pay a penalty • At a fixed interest rate • Usually higher interest since it is less liquid • Maturity Date • The date on which the investment becomes due for payment

  5. Savings Options, cont. • Money Market Account • Combination savings/investment plan • Highly liquid, money can be withdrawn any time • Usually not insured • Interest rate changes depending on the market • Usually higher rate than savings account • Usually requires a higher minimum balance

  6. Selecting a Savings Plan • Liquidity • How quickly can you turn it into cash? • Safety • Is it insured, for how much? • Convenience • Do you want to go to multiple banks for different services/accounts? • Interest-Earning Potential (Yield) • How much will you earn from this account? • Fees and Restrictions • Minimum balance? Service/ATM charges? Other fees?

  7. Saving Regularly • Will you save every day/week/month? • If you don’t actually put the money in… • Direct Deposit • You can have all or part of your check put directly into your savings • Automatic Payroll Deductions • Witholding a certain amount of each check automatically • Payroll Savings Plan/Payroll Investment Plan

More Related