Interest
APY (Annual Percentage Yield)
vs.
APR (Annual Percentage Rate)
APY = GOOD
APY = BAD
Checking Account
Used for everyday spending, and you can make as many deposits and withdrawals as you want through cash, checks, debit cards, or online transfers. They do not earn interest.
What is Regulation D?
Issued by the Federal Reserve, Regulation D restricts customers from withdrawing no more than 6 times a month.
What is Fiscus?
An organization that teaches finance and professional development!
What are interest rates?
Rates paid as a percentage of the principal or the original amount.
Savings Account
Savings accounts are designed specifically to save money and earn interest over time.
How much does FDIC insure up to?
$250,000 per account.
2 Things from Fiscus you can put on your college application!
Include:
Financial TutoringCompetitions
Junior Board
Fiscus Organization Social Media
What is Interest Spread?
It's your APY - APR, and the result after is your amount generated as profit from interest.
High Yield Savings Accounts
HYSA’s are similar to regular savings accounts but they earn a much higher APY, typically 4-5%
2 Examples of Online Banks, 2 Examples of In Person Banks
In Person: Chase, Bank of America, Santander
Online: SoFi, American Express
You can win up to how much money through Fiscus?
500$
Simple vs. Compound Interest
Simple: Interest earned only on principal (original amount)
Compound: Interest earned on principal AND previous interest
Money Market Account
A type of savings account whose APY fluctuates Ranging from 3-5%.
What are Bank Runs?
1. Too many people withdraw at once
2. Banks can't provide enough liquidity
3. Can lead to bankruptcy
When is our first official Helmsley panelist event?
December 21st