I am interested
Interest earned on both principal and any interest earned on the principal.
What is Compound Interest?
A passbook account which allow consumers to deposit or withdraw money at any time and to earn interest on the funds.
What is a savings account?
Responsible for controlling inflation, setting rages and the amount of currency in circulation.
What is the Federal Reserve?
The ability to quickly turn an investment into cash.
What is liquidity?
Retirement, emergencies and large purchases.
Why do people save money?
The percentage of increase in the value of your savings from earned interest.
What is Rate of Return?
Type of savings account that requires you to deposit a specified amount of money in an account for a set period of time.
What is a Certificate of Deposit (CD)?
The government agency that insures bank accounts against bank failure and loss.
What is the FDIC?
Putting money aside for future use.
What is savings
Savings is important to this because it generates loan money for people and businesses.
What is the economy?
Interest on this type of account does not change during the period the bank holds the funds.
What is a Certificate of Deposit (CD)
Form of money market fund offered by banks, savings and loans, and credit unions.
What is a money market deposit account?
The amount covered by the FDIC is a bank fails.
What is $250,000?
The date when the money in a CD become available to you
What is maturity date?
Regular savings accounts, certificates of deposit and money market deposit accounts.
What are savings plans?
Interest added to the principal and additional interest on a daily, quarterly, monthly or annual basis.
What is compound interest.
A pool of money put into a variety of short-term debt (loans less than one year) by business and government.
What are money market funds?
Banks report to and are under their control.
What is the Federal Reserve?
The risk that the rate of inflation will increase more than the rate of interest on savings.
What is inflation risk?
The amount most experts say you should save.
What is 10% of your take home pay?
An account that has a higher risk earns this.
What is a higher return?
An account that is very liquid, can be accessed by checks or debit cards.
What is a checking account?
FDIC
What is the Federal Deposit Insurance Corporation
When you give the bank money, you are basic lending the bank your money and you become one of these,
What is a creditor?
A money market fund from a brokerage firm is not insured by the FDIC and a money market deposit account from a bank is insured by the FDIC.
What is the difference in a money market fund and a money market deposit account?