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By: Diana Bronson, Victoria Verzi, James Payne, & Matthew Fluke
 Offer
checking and savings accounts and a range
of financial products and services
 Only institution that offers demand accounts (noninterest-paying accounts)
 Ex.
o Bank of America
 Entirely
online commercial banks
 Used for their convenience, lower service fees, and
higher interest on accounts
 Ex.
o Ally Bank
o Discover Bank
o USAA
 Gains
funds from and lends to community where it
operates
 Ex.
o Old Florida National Bank
• Boone High School
• Ad in the Yearbook, Newspaper, Sports Program, along with
merchandise

https://www.oldflorida.com/about_us/why_bank_local/
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Takes savings from deposits and put it into mortgage loans
for it members
Also offers checking and saving accounts
Not very common in today’s society
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Nonprofit, member owned institution that provides a full
range of financial products and services
Provides the highest return because they don’t receive fees
like the other institutions (nonprofit)
Members belong to common occupation, religious, fraternal
order, or residential area.
o Central Florida Educators – meant for teachers
o McCoy Federal Credit Union – meant for airport employees
o Fairwinds – meant for the Navy
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Many credit unions have opened up to people who live,
work, worship, and volunteer in a area or has family who do
so.
Make sure you stop by the CFE Boone Branch and open an
account 
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Only offered at commercial banks
Insured up to $250,000 per banking institution by Federal
Deposit Insurance Corporation (FDIC)
Called a demand deposit
o Bank is required to give the money to the depositor whenever they
wish to withdrawal it.


Normally doesn’t earn interest
Minimum balance required

Called time deposits
o the money that is deposited is expected to remain in the account
longer than a checking account

Offered at
o Commercial Bank
o Credit Union
o Savings and Loans
o Savings Bank

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Higher interest than checking account
Used to accumulate money for future goal or unexpected
expense
Insured by the FDIC up to $250,000
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Negotiable order of withdrawal accounts
Checking Accounts that offer interest
o Start paying interest at a certain balance

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All depository institutions are allowed to offer them
No legal minimum balance
Insured by the FDIC up to $250,000

Use checks and ATM’s to access account
o Limited number of free checks & transfers
• Not seen as a disadvantage because most think of them as savings

Compete with money market mutual funds
o More convient
o Safer- protected by FDIC

Offered at
o Banks
o Depository institutions

Savings instrument that earns interest
o People put their money into CDs because
• Convienent
• Federally insured
• Attractive return on money


must remain on deposit anywhere between 7 days to 7 or
more years
Penalty for withdrawing money before maturity date
o Normally requires you to forfeit a certain amount of interest

Longer time + more money = higher interest


Post your question to the Help Desk where one of us can
help you
http://floridastudentsaves.com/help_desk.aspx
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
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Only offered at commercial banks
Insured up to $250,000 per banking institution by Federal
Deposit Insurance Corporation (FDIC)
Called a demand deposit
o Bank is required to give the money to the depositor whenever they
wish to withdrawal it.


Normally doesn’t earn interest
Minimum balance required

Called time deposits
o the money that is deposited is expected to remain in the account
longer than a checking account

Offered at
o Commercial Bank
o Credit Union
o Savings and Loans
o Savings Bank


Higher interest than checking account
Used to accumulate money for future goal or unexpected
expense


Negotiable order of withdrawal accounts
Checking Accounts that offer interest
o Start paying interest at a certain balance


All depository institutions are allowed to offer them
No legal minimum balance

Use checks and ATM’s to access account
o Limited number of free checks & transfers
• Not seen as a disadvantage because most think of them as savings

Compete with money market mutual funds
o More convient
o Safer- protected by FDIC

Offered at
o Banks
o Depository institutions

Savings instrument that earns interest
o People put their money into CDs because
• Convienent
• Federally insured
• Attractive return on money


must remain on deposit anywhere between 7 days to 7 or
more years
Penalty for withdrawing money before maturity date
o Normally requires you to forfeit a certain amount of interest

Longer time + more money = higher interest
The key thing to understand is that the rate you get on a
particular security or account are all determined by the
risk associated with it.
Remember: Securities
are non-insured
investments, which are
more risky
Risk and Return plays a
part in every investment
and every place you will
put your money. Ever.
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To a certain extent, yes, it can go away.
Let’s give an example:
For example, if you put your money into an account with SAVES Co. SAVES Co.
will use that money to offer loans to other people to help them by cars or
houses, SAVES Co. then charges them more money than you gave to them.
That is how banks make their money. But let’s assume the people SAVES Co.
has given money to don’t pay them back and they keep giving loans. In that
instance the bank would become insolvent or, unable to pay its debts.
Your rate will be determined by your access to cash and how likely it is it might
go away.
The higher the risk with an investment, the more money you’ll make.
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Treasuries are sold by the U.S. government and are used as a
standard risk free rate throughout the economy.
Treasury securities will play a key role in your financial plan
There are three types of Treasury Securities and they are all
different periods of time.
o T-Bills- T-Bills last less than a year, they pay the lowest interest of all the
o
o
o
o
three types of securities because they are the least risky
T-Notes- T-Notes last between 1-10 years and have a median level of
risk
T-Bonds- T-Bonds last between 10-30 years, although the 30 year
bonds are no longer sold
Treasury securities are considered Highly Liquid, or easy to turn back
into cash through their sale
The longer the period on a Treasury, or any security, the higher your rate
will be.
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Series EE bonds are sold by the U.S. government, much like
Treasury Securities
Series EE bonds don’t get to be resold to anyone, if your
name is on the bond it’s yours.
Series EE bonds can be redeemed after just one year of
owning one, however you can keep them up to 20 years, all
the while gaining interest!
EE bonds are ultra safe, they have almost no risk, like
Treasuries.