NGPF Activity Bank

Saving

COMPARE: Types of Savings Accounts

Part I: Research Savings Accounts
1. TEAMWORK: Create small teams of 4-6 students per group. Your teacher will assign you one of the four types of savings accounts to research:
a. (1) Traditional Savings Account,
b. (2) Online Savings Account
c. (3) Certificate of Deposit (CD),
d. (4) Money Market Account

With your teammates, conduct online research on your assigned savings account type. Complete each field below.

Type of Saving Account: Traditional Savings Accounts

Describe how it works Typical Interest Rate: Typical Minimum Balance:

0.01% - 0.25% Varies, can be zero, but usually $25-$100
Money put into an account, that earns interest.
The banks make more money so they give you
interest. Used for infrequent transactions.
Can you add to balance regularly? Is it FDIC insured?
Yes Yes

Can you write checks / pay bills directly Is your money “stuck” for a set time?
from it? No, but there may be monthly transaction
No limits

www.ngpf.org Last updated: 5/6/20

1
 2. SHARE OUT: After each group has finished their research, go around the classroom and each team will share their research from each savings account type.
Assign each teammate in your group different parts of your research to share to the class. When another group is presenting on a savings account type that
you did NOT research with your team, follow along with their presentation by completing the main points in the table below.

Can you Write

Typically Money
Type of Typical Add to Is it FDIC checks /
Description Minimum stuck for a
Account Interest Rate balance insured? pay bills
Balance set time?
regularly? directly?

Traditional
Savings
Account

Online Functions as a traditional savings account, but has an No, but

Savings entirely online platform. there may
Yes, No check,
Account .5% (Chime) be monthly
none electronic YES you can
.1-.4% transaction
transfers pay bills.
limits.

Certificate Low-risk savings tool with higher interest rates than Currently: Ranges from Yes, CD’s
of Deposit savings accounts but you have to keep your money in .2%-.4% $500-$1000. last 3
No Yes No
that account for a period of time without a penalty 2019: Some even months-5
2.5%-3% $10000. years

Money A hybrid between a checking and savings account - Currently: Limited

Varies, can be
Market Higher interest rate, comes with limited transactions .01%-.08% check and
zero, but usually Yes Yes No
Account with some checking features. 2019: debit card
$100
1%-1.5% features.

www.ngpf.org Last updated: 5/6/20

2
Part II: Research A Bank or Credit Union
Now that you know the basics of how these four types of savings accounts work, let’s take a closer look at how these accounts compare
against each other at your favorite bank or credit union. Select one bank or credit union (it can be one that you or your parents / guardians
currently use, or one that you are interested in learning more about). Then, research the bank or credit union’s options for savings
accounts. NOTE: If the bank offers multiple products in the same category (ex: two tiers of MMA or CDs at 10 different time intervals) just
record answers for ONE of the options.

3. What bank or credit union do you want to explore? Include the name, website link and indicate if this bank / credit union is an ONLINE or a TRADITIONAL
brick & mortar institution.

4. Research information for a savings account, a CD, and an MMA for this bank / credit union. Record your findings in the table below.

Savings Account CD MMA

Interest rate

Minimum
deposit or
balance

Fee

Time period for

your deposit

www.ngpf.org Last updated: 5/6/20

3