| A | B |
|---|
| Checking Account (Definition) | Money deposited is easy to use on a daily basis |
| Checking Account (Interest) | May or may not earn interest |
| Checking Account (Liquidity) | Easily accessible – use a check, debit card, or withdraw money |
| Checking Account Feature1 | The most liquid savings tool |
| Checking Account Feature2 | Reduces the need to carry large amounts of cash |
| Savings Account (Definition) | An account to hold money not spent on current consumption |
| Savings Account (Interest) | Lowest interest rates of all savings tools except checking accounts |
| Savings Account (Liquidity) | Easily accessible but less accessible than checking accounts |
| Savings Account Feature1 | May require a minimum balance or have a limited number of withdrawals each month |
| Savings Account Feature2 | Great savings tool for an emergency fund |
| Money Market Account (Definition) | Usually has minimum balance requirements |
| Money Market Account (Interest) | Tiered interest rates |
| Money Market Account (Liquidity) | Limited to a certain number of transactions each month |
| Money Market Account Feature1 | Usually have to deposit a minimum amount to open the account ($1,000) |
| Money Market Account Feature2 | Less liquid than savings accounts but earns higher interest rates |
| Certificate of Deposit (Definition) | Used for a fixed period of time |
| Certificate of Deposit (Interest) | Interest rate will vary depending upon the specified time length and amount deposited |
| Certificate of Deposit (Liquidity) | Access to the funds deposited is restricted |
| Certificate of Deposit Feature1 | Time length usually ranges from seven days to ten years |
| Certificate of Deposit Feature2 | Penalties are most likely assessed if funds are withdrawn early |
