your money... ...your future.

Saving, Banking, and Investing



Banking on Prezi

Cash Course also has a variety of articles on Banking Your Money.


Banking

Holding Your Money
There are three main ways to save your money through a bank; checking accounts, savings accounts, and certificate of deposits. 

*Checking
 Checking Accounts can be charged using Checks, Debit Cards, or ATMs and is a good place to store money you plan to spend.

*Savings
While not all checking accounts will earn interest, savings accounts almost always do.  Savings accounts are a good place for money you intend to hang on to for a little bit.

*CD’s
 A Certificate of Deposit is an agreement between you and your bank that states that you have given them a specific sum of money for a specific length of time, and in return at the end of that time you will get your money back with higher interest than you can get in a savings account, and the longer you keep it in, and the larger the sum of money you deposit is, the higher your interest rate will be.

*Loans
The money you give to banks or credit unions is the same money they use to invest in the form of loans.  That is how they are able to pay you interest on your accounts.

Banks vs. Credit Unions

Banks
Banks are corporations who store and loan money in order to make a profit and benefit stock holders.  They usually have many branches throughout the United States and even internationally.  They also feature several online services.

Credit Unions
In contrast to banks, Credit Unions are owned and run by their members.  Because it is not a company they are able to offer higher interest rates, and convenient checking accounts.  Credit Unions may not have as many branches and often do not have many online options.


Saving vs. Investing

Saving
Saving money is as simple as keeping money safe in a bank or credit union.  Keeping money in a savings account or a CD allows you to earn interest but at a very slow pace.  Try this Interest Calculator to see the effects of long term saving.

Investing
Investing in the stock market, or bonds, lets you gain money quicker than savings or certificates of deposit but you may also loose some of it if the market does poorly.

Try Cash Course's article Understanding Saving Versus Investing for more info.