If you had $100 and wanted to put it into a savings account, which institution and type of account would you choose? Choose two local banks or credit unions and write their names in the chart below. Then research specifics about each type of savings account at the two institutions, such as whether there are fees or minimum balance requirements. Record notes on your findings in the chart. Based on your research, which bank or credit union would you choose?
Bank or Credit Union #1 Bank or Credit Union #2
Suncoast Credit Union Bank of America
Certificates of Deposit (CDs) 60 months, 2.20% APY 10 years, .15% APY
Savings Accounts Higher returns, federal .01% APY
insurance
Money Market Account Bonus points, rewards Higher interest rates
Retirement Accounts Tax implications Significant tax advantages
529 Savings Accounts Prepaid tuition Prepaid tuition
Mutual Funds No interest Overcharged at one point
Stocks Fluctuate Fluctuate
Bonds Stable High prices
Based on my research, I would probably choose Suncoast Credit Union.
Scenario 1
Aiden’s car is 12 years old and he’s worried it might break down, so he’s trying to save three months of expenses for unexpected repairs, while also saving fora new car. What are the best savings strategies for Aiden so he can keep his money accessible for repairs, but also save for a new car?
The best savings strategies for Aiden to help keep his money accessible for car repairs, yet also save for a new car would be to keep a portion of his money that he earns and use a careful cost comparison while doing so.
Scenario 2
Madeline’s friends invited her to go to Cancun next year for vacation. She really wants to go, but she’s not sure if she can afford the $1,000 trip. She has $500 saved in her dresser and has one year to save the rest, but she’s not sure where to keep her money so she can maximize her savings. What is the best savings strategy for Madeline and why?
If Madeline only needs to find a place to keep her money, she should put it somewhere that she doesn’t really look at on a daily basis. If she kept it in a small box, she could take little bits out when she goes shopping to keep her under a budget.
Scenario 3
Scott is a freshman in high school and plans to attend college someday. His grandparents gave him $5,000 to start his college savings, but he’s not sure where he should keep this money until he’s ready to go to college. What would be the best savings strategy for him?
The best savings strategy for Scott would be to keep his college money in a safe location that he would be able to add to later on such as a piggy bank.
Bank or Credit Union #1 Bank or Credit Union #2
Suncoast Credit Union Bank of America
Certificates of Deposit (CDs) 60 months, 2.20% APY 10 years, .15% APY
Savings Accounts Higher returns, federal .01% APY
insurance
Money Market Account Bonus points, rewards Higher interest rates
Retirement Accounts Tax implications Significant tax advantages
529 Savings Accounts Prepaid tuition Prepaid tuition
Mutual Funds No interest Overcharged at one point
Stocks Fluctuate Fluctuate
Bonds Stable High prices
Based on my research, I would probably choose Suncoast Credit Union.
Scenario 1
Aiden’s car is 12 years old and he’s worried it might break down, so he’s trying to save three months of expenses for unexpected repairs, while also saving fora new car. What are the best savings strategies for Aiden so he can keep his money accessible for repairs, but also save for a new car?
The best savings strategies for Aiden to help keep his money accessible for car repairs, yet also save for a new car would be to keep a portion of his money that he earns and use a careful cost comparison while doing so.
Scenario 2
Madeline’s friends invited her to go to Cancun next year for vacation. She really wants to go, but she’s not sure if she can afford the $1,000 trip. She has $500 saved in her dresser and has one year to save the rest, but she’s not sure where to keep her money so she can maximize her savings. What is the best savings strategy for Madeline and why?
If Madeline only needs to find a place to keep her money, she should put it somewhere that she doesn’t really look at on a daily basis. If she kept it in a small box, she could take little bits out when she goes shopping to keep her under a budget.
Scenario 3
Scott is a freshman in high school and plans to attend college someday. His grandparents gave him $5,000 to start his college savings, but he’s not sure where he should keep this money until he’s ready to go to college. What would be the best savings strategy for him?
The best savings strategy for Scott would be to keep his college money in a safe location that he would be able to add to later on such as a piggy bank.