Financial Literacy Glog - 2013

The Union Bank

The Huntington Bank

Summary!

Ally Bank

Statement Savings Account:There is a minimum balance of $50 (waived if under the age of 25), with a variable intrest rate of 0.01%. Also, there is a $2.00 service fee every month where the average balance falls below $200, (fee waived if you are under the age of 25). The withdrawals are limited to 3 per month. If you exceed this limit, then an extra $0.50 will be charged for each extra withdrawal. 12 Month CD:One can invest as little as $500 in a 12 month CD. The intrest rate is 0.05%. There is only a service fee/ penalty if one withdrawals money before the initail 7 days, within opening the account, is up. However much the CD is worth is the maximum withdrawal amount. The CD is compounded or paid to a Union Bank deposit account. Personal Money Market Account:The minimum balance is $1,000 with a variable intrest rate; being described as "tiered to the amount in the account." There is a $6.00 service fee for each month that the balance falls below $1,000. There is a 6 withdrawals per month limit and one must pay an additional $6.00 each extra time. A Money market account is compounded daily and paid monthly.

Anywhere Savings Account:There is no minimum balance and no monthly fee. If you close the account before 6 months of creating the savings account, then there is a $25 closing fee. The intrest rates are 0.01% for $2,499.99 and then 0.02% from $2,500 and beyond. There is a maximum withdrawal of $400 per day at an ATM; however, there is no limit in a branch bank. The intrest is accured daily and compounded monthly. 12 month CD:Minimum balance is $15,000. From $15,000-$250,000 the intrest rate is 0.10%. There are no service fees except with early withdrawal fees. A penalty will be impaired for early withdrawal during the original term on the amount principle withdrawal within the first 6 days after opening the account. However, there are no penalties for early withdrawal in the initial term. The maximum withdrawal is the amount of the CD. The CD's intrest is accured daily and compounded monthly. Premier Money Market:There is a minimum balance of $1,000 and all of the intrest rates are .05% from anywhere between$0.01- $99,999,999,999.99. There are no monthly fee when the average daily balance is $2,000 or the Money Market Account is linked with a checking account. The Maximum withdrawal amount is 6 withdrawals per month. (I did not find how often it compounded or an early withdrawal penalty.)

12 Month CD: There is no minimum balance required with an intrest rate of 0.940%. There are no servie fees; however, if the account is closed early you have to pay 60 days worth of intrest. The maximum withdrawal is the amount of the CD and it is compounded daily. Online Savings Account:No minimum balance with an intrest rate of 0.84%. The service fees are $20.00 for any outgoing domestic wires, $15.00 for any expdeiated delvieries on items, and $25.00 per hour for account reasearch.There are no penalties for early withdrawals; however, there is a maximum withdrawal amount of 6 withdrawals per statement cycle. The online savings account compounds daily.

For opening a savings account, I would open a statement savings account at a local Union Bank branch. Choosing the Union Bank would be the best decision for me because it is conviently located 10 minutes away from my house. In addition to that, I would not have a minimum balance to open the account, since I am under the age of 25. Terefore, I could invest any amount I want to open the account, and then continue to add more money from my paychecks. Also, I would not have a service fee since I would be under 25 years of age. Moreover, I would not have to worry about withdrawaling money more than 3 times per month, since I would use my Finanacial Literacy knowledge and use the 70-20-10 Rule, and "Pay Yourself First." Therefore, in theory, I would not need to exceed 3 withdrawals per month. However, if for some reason I would need to exceed the maximum withdrawal amount, I would only be charged 50 cents, which isn't that bad; espically since I don't get charged a service fee when I'm under 25 years of age. In conclusion, the Union Bank would be the best choice of savings account for me.