Choosing a Savings Account

CHOOSING A SAVINGS ACCOUNT IF AN ACCOUNT HAS A MINIMUM BALANCE, DROPPING BELOW THIS CAN RESULT IN A HEFTY FEE APY (ANNUAL PERCENTAGE YIELD) APY IS A MORE ACCURATE REFLECTION OF HOW MUCH INTEREST CAN BE EARNED ON MONEY IN A SAVINGS ACCOUNT WHEN COMPOUNDING IS INCLUDED. COMPOUNDING MEANS BY NOT WYTHDRAWING FROM THESE ACCOUNTS A HIGHER INIEREST YIELD CAN BE EARNED FOR LONGER EARNING INTEREST IN ALL MONIES IN THE ACCOUNT, INCLUDING PREVIOUSLY PAID INTEREST. How TO CALCULATE THE APY OF ANY SAVINGS ACCOUNT OPEN UP AN EXCEL SPREADSHEET AND ENTER THE STATED ల ANNUAL INTEREST RATE OF THE ACCOUNT INTO CELL A1 (AS DECIMAL, IN THIS CASE 6% AIR). ENTER THE NUMBER OF TIMES INTEREST WILL BE CERTIFICATES OF DEPOSIT COMPOUNDED EACH YEAR (THIS EXAMPLE SHOWS DAILY COMPOUNDED INTEREST) ENTER THE FORMULA =POWER((1+(A1/B1)),B1)-1 INTO CELL C1 THE RESULT IS THE APY OF THAT ACCOUNT ACCOUNTS OFFERED BY AN FDIC MEMBER BANK ARE A SAFE INVESTMENT PROTECTED UP TO STANDARD FDIC LIMITS CURRENTLY $250,000 PER DEPOSITOR DAILY COMPOUNDED INTEREST YIELDS HIGHER RETURNS THAN MONTHLY, QUARTERLY OR ANNUAL 0.06 365 6.18% PER INSTITUTION THE INTEREST RATE ONA MONEY MARKET ACCOUNT AMERICANS TENDS TO BE HIGHER THAN A HAVE NO SAVINGS STANDARD SAVINGS ACCOUNT WHICH IS RIGHTO ACCOUNT FOR YOUS CERTFICATE OF DEPOSIT O REGULAR SAVINGS ACCOUNT MONEY MARKET ACCOUNT V O BASED ON TYPICAL ACCOUNTS - FEATURES MAY VARY DEPENDING ON BANK CHECKS ALLOWED EASY ACCESS HGH NTEREST YELD WITHORAW ANY TME FICED INTEREST RATE LONG TERM SAVING RESTRICTED ACTIVITY MINMUM DEPOSIT TO OPEN FURTHER DEPOSITS ACCEPTED MINMUM BALANCE FEATURES