Thats Life!

A Penny Saved is a Penny Earned

1. Complete the following chart regarding different types of savings options and insert it onto your website under a separate tab for Savings. Description Advantages - A bank - Interest account set - Access the up specifically money for saving whenever you that need it accumulates interest -A bank account -High interest with a predetermined time stamp Disadvantages -not the highest interest available

Savings Account

Certificate of Deposit

Money Market

-An interest earning account

-Interest -Able to make withdrawals -Accumulates interest -Able to deposit income directly into account -Qualified distributions are tax free -Collects interest

Traditional IRA

-Tax-deferred savings account for retirement

-Money is inaccessible before the maturation of the account -only able to withdraw by paying a fee -restricted number of withdrawals -Requires a larger balance than saving -withdrawals are taxed

Roth IRA

-Retirement plan

2. Prepare a visual aid (i.e. Powerpoint, Prezi, table, etc.) that displays information from three different banks comparing services offered and fees charged for those services. Then, rate the financial institutions based on the data you have collected. The following information must be included in your final product and

you must upload this assignment to your Economics Portfolio under the Savings tab. Name of financial institution One checking account product from that institution o Include minimum balance required, fees charged and interest earned. One savings product from that institution o Include minimum balance required, fees charged and interest earned. Rating of each institution (scale of 1-3, with 1 being the best) and why CHECKING -Monthly Maintenance Fee: $13.00 Quarterly Activity Fee: $10.00 -Minimum Opening Deposit: $50 -No interest SAVINGS (Money Market Account) -Monthly Maintenance Fee: $12.00 -Minimum Opening Deposit: $50 -Withdrawal Fee: $5.00 per withdrawal (after 6 free per month) -.03 interest on $124,999 -.05 interest on $25,000+ (Standard CD 7-89 Days CD) -Minimum deposit of $5,000 -interest rate of 0.05% -no fee specified RATING 3- Comerica has the highest checking account fees and has a monthly maintenance fee on their Money Market Account

BANK Comerica

Fifth Third

(Essential Checking) -Monthly Maintenance Fee: $11 Reduced to $8 per month with monthly direct deposits totaling $500 or more -No minimum deposit (Standard Checking) -No monthly service charge if you meet any ONE of the following:

2- Fifth Third has the second lowest checking account fees and a competitive interest rate on their CD

PNC

(Ready Access CD) -Minimum Deposit of $1,000 -No early withdrawal fee

1-PNC offers the lowest checking account fees and no early withdrawal fee

$500 or more average monthly balance in checking OR, $500 or more qualifying monthly direct deposits OR, if you are 62+ years old Otherwise, $7 -No interest -Accumulate Reward Points

after the first 7 days - Interest of %0.05 on 3 months -Interest of %0.15 on 12 months

on a CD

3. Finally, prepare a savings plan for yourself. You need to include how you save in the present, how you plan to save in 5 years and how you hope to save in 10 years. This should include such details as short and long term savings as well as retirement. This should also be uploaded to your website under savings. Presently I have a savings account with Comerica, I deposit $25 a week into the account. In five years I plan on putting $1,000 into a 12 month Ready Access CD at PNC bank. In 10 years I will open a ROTH IRA account and save for retirement.