Explain: By the end of this lesson, you will be able to identify savings options and types of savings products.

Question: How many of you have savings accounts or other investments?

Question: In what products do you have your money invested?

Instructor Note: Call on volunteers who raised their hands and allow them to tell the group where they have saved money. Bullets will appear upon a second mouse click after discussion.

Explain: Savings can offer you many benefits when you choose to set aside money for the future. With your savings you may choose to travel, set aside money for your children's education, purchase a vehicle, save for a down payment on a house or plan for your retirement.

Question: In what products do you have your money invested?

Explain: Savings accounts have so many benefits. It is important to understand the different savings and investment options. You want to make sure that you put your money in the right type of account - one that helps you meet your financial goals. Today we will discuss the savings investment options available.

We suggest that, whatever option you choose, you invest your savings with a financial institution that insures them.

In a financial institution, your money may be insured up to $100,000.00 by the Federal Deposit Insurance Corporation -- FDIC -- or the National Credit Union Association -- NCUA. That means that the FDIC or NCUA will make sure you get your money if your financial institution goes out of business. This also can be important in the case of a depression. Be sure to put your savings in financial institutions that offer insured accounts.

Explain: Let's look at the different savings investments options. The types of savings accounts are: (listed on Slide #4).

Question: Each type of account has unique features. Can anyone explain the differences among them?

Explain: Here are the main differences between these two different savings accounts:

Statement savings and passbook savings accounts are similar, and are two of the most common ways people save. Both of these accounts earn interest. The difference is in the recordkeeping. With a statement savings account, you receive a quarterly statement. With a passbook savings account, all transactions are recorded in a passbook. You take your passbook to the bank when making transactions, and the teller updates your account information.

Explain: A club account is a savings account dedicated to a specific goal, such as a Christmas club account or vacation club account. It is based on weekly or biweekly deposits of a fixed amount. For example, every week you might deposit $10 into your Christmas club account. At the end of the year, you would have saved $520 for the holidays.

Explain: A money market account is an account opened at a financial institution which invests your money in safe, short-term debt instruments, such as CDs and U.S. Treasury bills. It usually pays a higher return than regular savings accounts. Money market accounts do not have fixed terms, and you can make deposits and withdrawals each month.

For example, you might open a $500 money market account and each month put $50 into the account. The financial institution would invest your money in safe, short-term debt instruments and each month pay you interest on your money. The rates will vary each month according to how your money is invested by the institution.

Explain: A CD is a short-term investment with a maturity from a few weeks to several years. Interest rates are established by market demand and competition. CDs are held for a fixed term, and you do not deposit and withdraw from this savings product. At the maturity of the CD, you are paid interest on your money.

If you put $500 in a one-year CD, at the end of one year, you will be paid the $500 plus interest. This investment would not allow you to deposit more money into the CD, or withdraw from the investment.

CDs and Money Market accounts generally earn higher interest rates than regular savings accounts, but also require higher minimum balances.

Lesson Summary: Congratulations! You have completed Where to Save in this Money Management series of classes.

We've covered a lot of information, including identifying savings options and identifying types of savings products

Question: Are there any questions?