Senior Civics Saving and Investing Activity

Saving is important for your future! Whether it’s for a downpayment on a house, a
car, or for anticipated expenses.

A major factor in saving is TIME!! How long you leave the $ w/o touching it along
with the interest rate is crucial!

Traditional methods of saving are relatively risk-free, BUT you need to be aware of
what you need to do, how much you need up front, and how long do you have to
leave the $ or are willing to be without it.

Shopping for savings accounts….go to each bank’s site and get the info needed on
traditional savings, money market accounts, CD certificate of deposit, and on a
ROTH IRA.
Note: How much to open?
Interest rate?
Length of time to mature if any?
Have to keep a minimum balance? If so…how much?
Can you access the $ freely or?

For a traditional savings account in each bank……assume you have $1500 to

put in. At each bank’s interest rate………how much will you earn on this
deposit after 12 months?
fifth third - 0.45
Chase - $0.15
LMCU - $7.50
Now do the same with a CD. Assume you are opening it with the same $1500.
How much would you earn in interest on a 12 month CD? A 24 month?

Is there a noticeable difference between what you can earn with a CD over
traditional savings? Disadvantages to having your $ in a CD vs traditional savings?

Use these banks:

Lake MI Credit Union

How much to open? does not say
Interest rate? 0.50%
Length of time to mature if any? none
Have to keep a minimum balance? If so…how much? unknown
Can you access the $ freely or? no there are fees.
Fifth Third Bank
How much to open? none
Interest rate? 0.03
Length of time to mature if any? unknown
Have to keep a minimum balance? If so…how much? none
Can you access the $ freely or? service fees unless used on their atm
Chase Bank
How much to open? $12
Interest rate? 0.01%
Length of time to mature if any?unknown
Have to keep a minimum balance? If so…how much? $12 monthly fee
Can you access the $ freely or? if you use their atm or services
otherwise you’ll get a fee.