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Account Types

1) You have $10,000.00 to invest. Pick a bank, any bank,(Bank of America, USAA,Wamu, Wells Fargo, ect.) and investigate the details of the mentioned four account types they have. Explain how the various account are set up and what you do and don't get. Do not assume the reader of your paper knows everything about checking, savings etc accounts. Explain in detail the different accounts. Include in the description of each account type the following kinds of information below that is relevant from the investing perspective.

1. The annual interest rate for that account (what you can currently expect). What return can you expect in a year?

2. The fees if any, or various minimums (must mention the actual dollar amount)

3. Access to the money. There may be time limits (how long?).

4. How safe? Federally insured?
After you have gotten all the relevant information evaluate the advantages and disadvantages of each account type in light of the information.

5. Finally assume you are going to keep your money in the account for at least a few years. Conclude your paper with which account you would choose and why. The highest return rate is not the only criterion you should use.

Solution Summary

This solution compares a checking, savings, and two type of CD accounts from PNC Bank. The analysis includes interest rates, access to cash, and risk.