Savings Options & Interest Rates
- Price per ClassroomFREE
- Grade Levels 7, 8, 9, 10
- Topics Saving
- Duration 10 Minutes
- Auto Scored? Yes
- Teacher Evaluation Needed? No
Activity Description
In this activity, students explore three common savings options—Savings Accounts, CDs, and Money Market Accounts. They will analyze interest rates from various banks and credit unions as of July 2023 and answer questions based on their findings. This exercise helps students understand different savings vehicles and make informed decisions.
They will also analyze the data that shows trends in savings account rate changes from 2010 to 2023.
Learning Objective
In this interactive worksheet activity, students will analyze the interest rate offered by 3 institutions - Boeing Employees’ Credit Union, Pentagon Federal Credit Union, City Bank, and Bank of America for each of the account types - Savings Account, CD, and MMA. Students will compare the data and answer the given questions. Students will also be presented with the historical savings account interest rates from 2010 to 2023 for analysis.
Teacher Tips
- Price per ClassroomFREE
- Grade Levels 7, 8, 9, 10
- Topics Saving
- Duration 10 Minutes
- Auto Scored? Yes
- Teacher Evaluation Needed? No
National Standards in Personal Financial Education
Students will know that Financial institutions pay interest to depositors and loan out the money to borrowers who pay interest on their loans .. Students will use this knowledge to 8-3a . Compare and contrast different types of financial institutions and their products and services . 8-3b . Compare the interest rate paid by a financial institution on savings accounts to the interest charged by the same institution on loans . 8-3c . Explain how financial institutions get the money to pay interest to their customers who deposit money in savings accounts .
Students will know that Interest earned on savings is the interest rate multiplied by the balance in the account, which includes the original amount saved (principal) and previously earned interest .. Students will use this knowledge to 8-4a . Differentiate between principal and interest . 8-4b . Demonstrate how earning a higher interest rate on money in a savings account will help a person to reach their savings goal sooner . 8-4c . Use the Rule of 72 to approximate how many years it will take for savings to double in value at different rates of interest .