• A savings account typically refers to an account in which one places money to earn a small amount of interest.

• NOTE: to wisely save your money, You need to shop around for a savings account that offers the best interest rates.

Why do peoplesave money?

• For emergencies

• For Retirements

• For a Down Payment for a House

• for Vacations and Other Luxury

Items

• For education

• For New car

Time Deposits or certificates

of deposits

Statement Saving

Account

Passbook Saving

Account

Money Market Deposit Account

• Passbook savings account is the savings account where all record of credits and debits, including deposits, withdrawals, and interest, are recorded on a passbook usually kept by the account holder.

1-Passbook savings account

• Passbooks are routinely updated with the necessary information by the bank. This type of account is well suited for those depositors who transact infrequently on their account and who don't have a need for a monthly statement.

2- Statement Savings account

• A savings account statement comes usually on a basic savings account. It will tell you what transactions have taken place on that account within a certain period of time.

• Savings account statements will usually be sent to the account owner quarterly. The statement will show beginning balance, any deposits and withdrawals, interest earned and ending balance.

3- Money market deposit accounts

• Is A savings account which shares some of the characteristics of a money market fund. Like other savings accounts, money market deposit accounts are insured by the Federal government. Money market deposit accounts offer many of the same services as checking accounts although transactions may be somewhat more limited

• Money market deposit accounts are usually managed by banks or brokerages, and can be a convenient place to store money that is to be used for upcoming investments or has been received from the sale of recent investments. They are very safe and highly liquid investments, but offer a lower interest rate than most other investments. also called money market account.

3-Time deposit• Is a Savings account or CD held in a

financial institution, usually a bank, for a fixed term or with the understanding that the customer can withdraw only by giving advanced notice.

• The term generally is at least 30 days.

Certificate Of Deposit - CD

• A certificate of deposit is a promissory note issued by a bank. It is a time deposit that restricts holders from withdrawing funds on demand. Although it is still possible to withdraw the money, this action will often incur a penalty.

• For example

CDs of less than $100,000 are called

"small CDs"; CDs for more than

$100,000 are called "large CDs“

or "jumbo CDs". Almost all large CDs,

as well as some small CDs, are

negotiable.

let's say that you purchase a $10,000 CD with an interest rate of 5% compounded

annually and a term of one year. At year's end, the CD will have grown to $10,500

($10,000 * 1.05).

Money Market vs. Certificate of Deposit

• Although both can be useful, for those who need access to their capital, money markets are far superior. Many brokerage houses automatically sweep their customer’s uninvested cash into money markets to earn interest between investments. This is the ideal solution if you regularly invest because the funds can be used immediately to

purchase stocks, bonds, or mutual funds.

Done By:-Ansam AmirNoha Ghonim