The Six-Column Work Sheet
Making It Personal
How Stuff Works, How Do Savings Accounts Work?
When you are ready to start saving your money, opening a savings account can help keep your hard earned cash safe and even earn you some interest. Take a look at the How do savings accounts work? Web page for information on types of accounts, interest, and costs involved.
Destination Title: How Stuff Works, How Do Savings Accounts Work?
Start at the How do savings accounts work? Web page. Record your answers to these questions separately.
1. What is the FDIC, and what function does it provide?
2. Describe the two kinds of savings accounts that most banks offer.
3. How do banks make money on savings accounts?
4. Why is compounded interest better than simple interest?