Interest on Savings Goes Up and Down

Banking

KAHOOT�VERSION

1. What’s the highest interest rate being offered in a high-yield savings account in early 2023?

a) 1.5%

b) 2%

c) 5%

d) 6.5%

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INTEREST ON SAVINGS GOES UP AND DOWN MAY 12, 2023 EDITION | NEXT GEN PERSONAL FINANCE

1. What’s the highest interest rate being offered in a high-yield savings account in early 2023?

a) 1.5%

b) 2%

c) 5%

d) 6.5%

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INTEREST ON SAVINGS GOES UP AND DOWN MAY 12, 2023 EDITION | NEXT GEN PERSONAL FINANCE

2. When inflation is low, what does the Federal Reserve tend to do?

a) Increase interest rates

b) Keep interest rates low

c) Not change interest rates at all

d) Allow Americans to vote on what the do next

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INTEREST ON SAVINGS GOES UP AND DOWN MAY 12, 2023 EDITION | NEXT GEN PERSONAL FINANCE

2. When inflation is low, what does the Federal Reserve tend to do?

a) Increase interest rates

b) Keep interest rates low

c) Not change interest rates at all

d) Allow Americans to vote on what the do next

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INTEREST ON SAVINGS GOES UP AND DOWN MAY 12, 2023 EDITION | NEXT GEN PERSONAL FINANCE

3. What does high inflation do to the value of your savings over time?

a) Keep it constant

b) Increase it

c) Decrease it

d) Have no effect on it

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INTEREST ON SAVINGS GOES UP AND DOWN MAY 12, 2023 EDITION | NEXT GEN PERSONAL FINANCE

3. What does high inflation do to the value of your savings over time?

a) Keep it constant

b) Increase it

c) Decrease it

d) Have no effect on it

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INTEREST ON SAVINGS GOES UP AND DOWN MAY 12, 2023 EDITION | NEXT GEN PERSONAL FINANCE

4. Why do banks try to offer the highest savings account rates they can?

a) To attract customers and remain competitive

b) To decrease funding costs

c) To decrease profitability

d) To lower the inflation rate on goods and services

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INTEREST ON SAVINGS GOES UP AND DOWN MAY 12, 2023 EDITION | NEXT GEN PERSONAL FINANCE

4. Why do banks try to offer the highest savings account rates they can?

a) To attract customers and remain competitive

b) To decrease funding costs

c) To decrease profitability

d) To lower the inflation rate on goods and services

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INTEREST ON SAVINGS GOES UP AND DOWN MAY 12, 2023 EDITION | NEXT GEN PERSONAL FINANCE

5. Why is getting the highest interest rate important for depositors?

1. It can boost a depositor's credit score
2. It’s a way to show that you're a valued customer
3. It’s one way to lower the fees that you pay
4. It can help combat inflation and maintain purchasing power

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INTEREST ON SAVINGS GOES UP AND DOWN MAY 12, 2023 EDITION | NEXT GEN PERSONAL FINANCE

5. Why is getting the highest interest rate important for depositors?

• It can boost a depositor's credit score
• It’s a way to show that you're a valued customer
• It’s one way to lower the fees that you pay
• It can help combat inflation and maintain purchasing power

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INTEREST ON SAVINGS GOES UP AND DOWN MAY 12, 2023 EDITION | NEXT GEN PERSONAL FINANCE

You’ve completed the exercise, now it’s time to learn

more about the current event:

INTEREST ON SAVINGS GOES UP AND DOWN MAY 12, 2023 EDITION | NEXT GEN PERSONAL FINANCE

Discussion Prompt:

What steps, if any, do you suggest taking to ensure you’re earning the highest interest rate possible?

INTEREST ON SAVINGS GOES UP AND DOWN MAY 12, 2023 EDITION | NEXT GEN PERSONAL FINANCE

Extend Your Learning

Three Relevant Resources from NGPF:

• What percent of teens have opened a bank account? (Question of the Day)
• MOVE: Using the Rule of 72 (Activity)
• COMPARE: Types of Savings Accounts (Activity)

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References:

• 8 interest savings accounts offering 5% APY (CNBC)
• How Often Do High-Yield Savings Rates Change? (Experian)
• What the Fed Rate Increase Means for Savings Accounts (Nerdwallet)

INTEREST ON SAVINGS GOES UP AND DOWN MAY 12, 2023 EDITION | NEXT GEN PERSONAL FINANCE