pros ~ 1) easiest money holder, its the most basic and recommended by the bank 2) Earns interest over time cons ~ 1) less access to your money so your not tempted to spend it 2) Very little interest rate
so what do you think?
that savings vehicle hold money for a certain period of time.
well trent i think you should choose"CD"
Because you want a car in a couple years right?
pros ~ 1) Allows you to write checks 2) Higher interest rate than savings account cons ~ 1) has a minimum balance requirement 2)
the rule of 72 is a formula that lets you know how long it takes for your money to double.
you divide you interest rate by 72 and your answer is how many years it takes to double
how do you figure it out Trent?
pros ~ 1) longer you let the bank hold your money, more money the bank will give you 2)great for saving up for college & no minimum deposit cons ~ 1) some "CD" banks have an early withdrawal penalty's 2)
A certificate of deposit account is an account that holds money for a specific period of time or term
this account holds money for a certain period of time and earns you interest for every year you hold your money in there. So in a few years you would earn like $60 more.
regular savings interest rate is 5% ~ 72 divided by 5 = 14 years and 4 months MMA interest rate is 1% ~ 72 divided by 1 = 72 years CD intrest rate is 1.5% ~ 72 divided by 1.5 = 48 years
nice job son, and im glad i can help an soon you will be able to get that car.