Personal Finance Project
Choose a bank, savings and loan, or credit union. You will need to visit their website to
get information about their interest rates. The questions that follow will use information
you get from this one financial institution. Show all computations in your answers.
Here are some possibilities (though you do not need to choose from this list): WaMu,
Frontier Bank, Bank of America, Key Bank, US Bank, Wells Fargo, Countrywide Bank,
Columbia Bank, Homestreet Bank, Banner Bank, Chase, Capitol One, HSBC Direct, ING
Direct, BECU, Watermark CU, Cascade FCU, Qualstar CU, United Savings and Loan.
1. What institution did you choose?
2. Choose one of the available savings or money market accounts. Tell me the name of
the account/what type of account it is. What is the interest rate it pays? How often is it
compounded? (If the website does not say how often interest is compounded, you may
assume it is monthly for problems 3 – 5.) Are there any fees?
3. If you deposit $3000 in this account, how much will be in the account after six years?
(Assume that the current interest rate stays constant for the next six years.)
4. If, instead, you put $100 into the account every month, how much money will you
have in 6 years?
5. Suppose you want to have $10,000 in six years, but you do not have enough money to
set aside now to make that happen, so you need to set up a savings plan using this
account. Describe what payments you will need to make: how much money each
payment should be, and how often (annually, monthly, etc.).
6. Do you think this account is a good option for saving money, or do you think another
option would be better? Why?