Type of Account	Interest Rate
Checking Account	0% - 0.58%
Savings Account	1.30% - 1.80%
Money Market Deposit	0.40% - 1.79%
Money Market Mutual Fund	1.10%
Certificate of Deposit	0.81% - 2.68%
U.S. Treasury Bill (T-bill)	0.15%
U.S. Savings Bond (I)	0.70%
Note: Do not use these rates for your examples since they are out of date and rates fluctuate. Part of the assignment is to find the current rates from your bank.

Now lets suppose that you want to find a better deal at a different bank given the rapidly changing interest rate environment. Go to the Doctor of Credit, beginners Guide to Bank Account Bonuses and read how to successfully earn new bank account bonuses and how to maximize them by avoiding associated fees.

Next, go to the bank account bonuses page for a listing of all the current and active new bank account bonuses.

Review the bank sign up bonuses and choose one that might best work for your cash flows

List the requirements and comment on if you think they are doable given your spending patterns.

Based on the required deposits, etc, calculate the return on your bonus and note how long it will take for you to get this return. For example, 60 days, 90 days, 6 months, etc.

Using the information from c, calculate what the annualized return would be, assuming youd be able to repeat the bank bonus for an entire year. For example, if once can earn a return of 3% on your money in 90 days, that would be a 12% annualized return.

How many of these bonuses do you estimate you can earn in a year and would that help you meet a short term financial goal?

Return=BonusfeesdepositsReturn=Bonusfeesdeposits

3. Calculate the Real rate of return in steps 1 and 2.

Look up the current annualized inflation rate, using the Consumer Price Index. The Bureau of Labor Statistics has a page devoted to it here: https://www.bls.gov/cpi/

Next, subtract the current inflation rate or CPI from the rates of return gathered above in steps 1 and 2. Which ones are higher?

Extra Credit

You can only get extra credit points from one of the tasks (25 points). However, you are welcome to do both if you feel up to it.

This applies to those who have overdraft fees. If you have acquired one of these in the near past call and see if you can come to an agreement with your bank. Sometimes they take off part of it or they may even forgive the whole amount. Worst case scenario they say no.

Document your attempt to have your overdraft fee removed and write a few sentences about your experience. Bring it to class and we can use it for discussion.

As you are shopping for a good bank or looking at saving options, maybe you are enticed to actually deposit funds in one of these institutions. If you do not have a checking or savings account maybe it would be good to open one. Make sure it is FDIC insured.

Open one of these accounts and send me dated proof of and it will be rewarded with extra points. Write a few sentences about your experiences and bring it to class for discussion.