Savings Accounts

A savings account helps keep your money safe. The most common types of savings accounts are called passbook or statement accounts.

Interest is the key to how your savings grows. It's the fee that the financial instution pays you for keeping your money in a savings account. That's right! You earn this money.

There are other types of savings accounts:

• Money Market Accounts - pays you interest and allows you to write a certain number of checks each month. You must keep a minimum balance.


• Certificates of Deposit - pays more interest than a Money Market Account. But you must keep your money in the CD for a set time period.


• Individual Retirement Account - Pays you interest that is not taxed until you retire.


• Education IRA - It allows you or your parents to put away money for your colleged education. Interest is not taxed if the money is used to pay for college.

Keep reading to learn more!

Savings Account Strategies

It’s finally payday! But what are you going to do with your hard-earned money? Go shopping, put some away for college, see a movie, take a trip? No matter what you decide, consider making your savings account your first stop.

A savings account can ...

keep your money safe
help you earn more money
cash your check
provide access to your money

A savings account can do all of these things for you! There are different types of savings accounts Read MoneyTalks for Teens on Saving Account Strategies to learn more. On page 2,take the survey to figure out which type of savings account is best for you.