Money 101 Lesson 3

Hi again, this is lesson 3 top things you should know. If you have not read any of these lesson on my blog then you can find them all at money.cnn.com. I will continue to post these lesson here for a quick peek. but the whole article can be found at the web site. Enjoy

clipped from money.cnn.com Top things to know 1. Money in a bank account is safe. A bank is one of the safest places to stash your cash since your account is insured against loss by the federal government for up to $100,000 per depositor. 2. You pay for the convenience of a bank account. Banks pay lower rates on interest-bearing accounts than brokerages and mutual fund companies that offer check-writing privileges. What's more, bank fees can be high - account costs can easily add up to $200 a year or more unless you keep a minimum required balance on deposit. 3. Inflation can eat what you earn from a bank. Even at a low rate of inflation, the annual creep in the cost of goods and services usually outpaces what banks pay in interest-bearing accounts.