CONSERVATIVE

You are the conservative investor of your group. You are concerned with keeping your risk of losing money as low as possible by using traditional savings accounts and certificates of deposit (CDs).

Here are some questions to keep in mind as you browse the web.

1. What is a savings account?
2. What is a CD?
3. What is the particular interest rate available?
4. What (if any) are the fees?
5. Is the savings account compounded daily or quarterly?

Resources

First, here are some websites which will help you understand what savings accounts and CDs are.

• FDIC Learning Bank - What is a Savings Account
  This site is geared towards younger children.
• Glossary
  This site gives the definition of a CD.

Next, here are some websites which will help you find specific information on particular savings accounts and CDs.

• LaSalle Bank: Savings Accounts
  This site describes the different types of savings accounts available at LaSalle Bank. It does not provide the current rates.
• LaSalle Bank: Locations
  This site gives the address and phone number of all the LaSalle Bank branches around Chicagoland. You can then call a particular branch to ask for the current interest rate on a savings account.
• LaSalle Bank: Certificate of Deposit
  This site describes the different CDs available at LaSalle Bank. It also lists an (800) number you can call to get the current rates.
• Midwest Bank
  This site gives the current savings account and CD interest rates for Midwest Bank in Downers Grove.
• Bank Rate Monitor
  This site allows you to enter information about what type of CD you want and where you live. It will then find the best rates for you, and list them by bank.

Finally, here are some sites which will help you calculate the value of a savings account or CD at the end of the 12-week period.

• TI-83 Calculator
  This site describes how to compound interest using the TI-83 calculator.
• Lesson 2 Compound Interest
  This site explains the mathematics behind compound interest formulas.
• Plug In The Numbers
  This site allows you to plug in values for initial investment, interest rate and how frequently the interest is compounded and it will calculate the interest earned on your investment.