BANKING, SAVINGS, INVESTMENT TRIANGLE

BONDS

• Letting someone borrow money
• Commonly referred as a fixed-income securities
• Borrow funds for a defined period of time
• Instrument of indebtedness of the bond issuer to the holders
• 1.48% in interest rate

COLLECTIBLES

• Items that you collect
• Collectibles can damaged or lost over time
• Coins, stamps, baseball cards, dolls, and antiguew are considered as collectibles

SAVING ACCOUNTS

• Account maintained by retail financial institutions that pay interest
• Let costumers set aside a portion of their assets while earning a monetary return
• Savings account may not be callable immediately

FDIC

• Federal Department Insurance Corporation
• Government Corporation operating as an independent agency created by the Banking Act of 1933
• Provides deposit insurance guaranteeing the safety of a depositers account
• FDIC receives no congressional appropriations

RISK

• There is a risk with doing bonds
• People could go bankrupt and won't have to pay you back
• Interest rate is the highest risk

SAVING BOND

• 2% intrest
• (Federal) bond- lets the government borrow money
• Debt securities
• U.S department of the treasury to help pay for the U.S government

MUTUAL FUNDS

• You own this bond
• Little pieces of companies
• Less risky
• Owner

STOCK

• You own this bond
• Part of company
• Own = owner = 1 share - vote 1 share
• Profits = dividend(payback)

SAVING, CHECKING, CD, MONEY MARKET

• Certifacate of deposit has 2% intrest
• Saving has 1% in intrest
• Checking has a 0% intrest
• Money market is a FANCY checking account
• Money market you have to pay intrest

CORPORATE BOND

• 5-7% intrest
• More of a risk than government bonds
• Intrest rates are almost always higher
• You let companies borrow Money

MUNICIPAL BOND

• 3-4% interest
• A bond issued by a local government or their agencies
• Commonly used in the United States
• You let the city borrow money

INVESTMENT TRIANGLE

• When you go and do bonds you have risk
• You could lose money or gain money
• Up the triangle means you assume risk
• Taking chances