Savings

• Pay yourself first• Next, pay your expenses• leftover money is called discretionary income

Savings Accounts

High Liquidity https://www.chase.com/savings

Types of Savings Accounts

A Certificate of deposit is a savings deposit that earns a specific amount of interest over a fixed amount of time.https://www.chase.com/savings/bank-cd

A money market account is a type of savings account in which your money is invested in securities such as government securities. • https://personal.vanguard.com/us/funds/snapshot?FundId=0030&Fu

ndIntExt=INT&WT.srch=1

Savings Bonds

Another option for putting money away to earn interest.https://www.treasurydirect.gov/indiv/research/indepth/ebonds/res_e_bonds.htm

Choosing a savings account option

1. For what purpose are you savings?2. How long will you be able to “park “ the money in the account

before you need to get it out?3. Do some accounts pay higher interest rates than others?4. Are there penalties for early withdrawal?

Earning Interest

Compound interest - Figuring interest earnings on both the original amount and any previous interest that has been added to the balancehttps://www.bettermoneyhabits.com/saving-budgeting/saving-for-future/earning-compound-interest.html?cm_mmc=EBZ-CorpRep-_-Google-PS-_-how%20compound%20interest%20works-_-Interest%20Phrase%20Earning%20Compound%20Interest%20Phrase

https://www.moneysmart.gov.au/managing-your-money/saving/compound-interest

Annual percentage yield

The APY, or rate of return, is the amount of interest your deposit would earn in one year, expressed as a percentage.

http://www.bankrate.com/?ic_id=story_auto_home_globalnav

Rule of 72

Simple way to estimate the effect of interest rates

Dividing 72 by the interest rate will tell you approximately how many years it will take to double your investment.