Checking vs. Savings

Purpose

To determine which type of account yields the most profit based on interest rate on a $50 balance. You can take this experiment one step further to determine which bank in your area offers the best annual interest rates on the same types of accounts.


Additional information

It is important for adults to know how much interest the money they keep in their checking and savings accounts is earning – they want to get the most bang for their buck! With this experiment, it is easy to find out.


Sponsored Links


Required materials

  • Parent or Guardian
  • Local Banks that you can visit in person or call on the telephone to determine the interest rates.
  • Journal or logbook
  • Calculator

Estimated Experiment Time

A few hours.


Step-By-Step Procedure

  • 1. Call the first local bank and ask them what the annual interest rate on their checking accounts is. Also ask them what the annual interest on their savings accounts is. Record this data in your journal.
  • 2. Repeat step one with several other banks. Record the annual interest rate for both checking and savings accounts at these banks in your journal.
  • 3. Calculate how much interest you would receive from the first bank if you deposited $50 into a checking account and left it alone for one year. Calculate how much interest you would receive from that same bank if you deposited $50 into a savings account and left it alone for one year.
  • 4. Repeat step three with each of the different banks. Calculate and graph your results.

Note

You will need an adult’s help to research the different checking and savings interests at your local bank.


Observation

Which type of bank account had the highest annual interest rate – checking or savings? Was the result consistent from bank to bank, meaning did checking (or savings) always have a better annual interest rate? Did the banks have different interest rates? Which bank had the best interest rate overall?


Result

It is likely that savings accounts will yield the highest profit based on the interest rate. Using your research, with which bank and with which type of account would you receive the highest interest rate and therefore the most profit? With your calculations, how much profit would you have made if you deposited $50 and left it alone for one year? What do you think would happen if you deposited more money? How can this experiment help people invest their money wisely?


Sponsored Links


Take a moment to visit our table of Periodic Elements page where you can get an in-depth view of all the elements, complete with the industry first side-by-side element comparisons!


Your email:
Your name:
Recipient email:
Recipient name:
Message:
 

Print this page   Bookmark this page  

Hide/View all projects Hide all projects Hide/View all projects

All Projects List

  • Accelerate Rusting
  • Acids And Bases
  • Additive Colors
  • Ant Microphotography
  • Apple Mummy
  • Balloon Rocket Car
  • Barney Banana
  • Bending Water
  • Bernoulli’s Principle
  • Blind Spot in Vision
  • Boiling Point of Water
  • Build an Electromagnet
  • Build an Inclinometer
  • Caffeine And Typing
  • Candle Race
  • Candy Molecules
  • Capillarity of Soils
  • Carbon in the Atmosphere
  • Checking vs. Savings
  • Chemical Metamorphosis
  • Clean Cleaners
  • Cleaning Oil Spills
  • Climbing Colors
  • Cloud Cover
  • CO2 & Photosynthesis
  • Collecting DNA
  • Colorful Celery
  • Coloring Matter in Food
  • Colors And Temperature
  • Composition of a Shell
  • Computer Passwords
  • Construct a Lung Model
  • Corrosiveness of Soda
  • Create a Heat Detector
  • Create Lightening
  • Cultivate Slime Molds
  • Cup of Lava
  • Dehydrated Potato
  • Desalinate Sea Water
  • Detergents and Plants
  • Dissolving in Liquids
  • Dissolving Solutes
  • Distillation of Water
  • Double Color Flower
  • Egg in a Bottle
  • Enzyme Activity
  • Eroding Away
  • Erosion Simulator
  • Evaportating Liquids
  • Expanding Soap
  • Exploding Ziploc
  • Extracting Starch
  • Fans And Body Temp
  • Fertilizer & Plants
  • Filtration of Water
  • Floating Ball Experiment
  • Floating Balloon
  • Fog Formation
  • Font and Memory
  • Food and Academics
  • Friction And Vibration
  • Fruit Battery Power
  • Full and Low Fat Foods
  • Galileo's Experiment
  • Gas To Liquid
  • Grape Juice & Cleaners
  • Gravity and Plants
  • Green Slime
  • Growing a Crystal
  • Growing Bread Mold
  • Growing Population
  • Haemoglobin Binding
  • Hard vs. Soft Water
  • Homemade Floam
  • Home-made Geodes
  • Home-Made Glue #1
  • Homemade Snowflakes
  • Home-made Stethoscope
  • Homemade Volcano
  • Homemade Windmill
  • Human Battery Power
  • Inertia of an Egg
  • Information and CD’s
  • Invisible Ink
  • Isolation of Bread Mold
  • Isolation of DNA
  • Jar Compass
  • Lemon Floaties
  • Levers And Force
  • Lift an Ice Cube
  • Light Colors and Plants
  • Long Lasting Bubbles
  • Magic Balloons
  • Magnified Light
  • Make a Compost Pile
  • Make a Fuse Model
  • Make a Parallel Circuit
  • Make An Elevator
  • Make Electric Circuits
  • Make Limestone
  • Make Objects Float
  • Make Static Electricity
  • Make your own sundial
  • Matchbox Guitar
  • Math and Gender
  • Mean, Median and Range
  • Measuring Air Pollution
  • Mentos Soda Volcano
  • Microbial Contaminants
  • Milky Plastic
  • Mini Greenhouse
  • Missing Reflection
  • Mixing With Water
  • Molls Experiment
  • Music and Plants
  • Musical Bottles
  • Nocturnal Plants
  • Ocean Life & Oil Spills
  • Ocean Temperature
  • Optical Mice
  • Oral Bacteria
  • Orange Water Volume
  • Organic vs. Inorganic
  • Osmosis
  • Oven Baked Ice Cream
  • Oxygen & Photosynthesis
  • Paper Bridge
  • Paper Marbling
  • Pascal’s Law
  • Play-Doh and Volume
  • Preserve Spider Webs
  • Pressure Volcano
  • Pulse Rates
  • Pythagorean Tuning
  • Refraction in Water
  • Rollercoasters & Loops
  • Rubber Bones
  • Rubber Heat Reaction
  • Rubbery Egg
  • Rust and Moisture
  • Search Engines
  • Secondary Colors
  • Seed Germination
  • Seed Germination II
  • Separate Salt And Pepper
  • Snappy Sounds
  • Soil Erosion
  • Soil vs. Hydroponics
  • Sound Waves
  • Spectrum through Water
  • Speed of Decomposition
  • Speed of Dissolving
  • Spore Prints
  • Star Observer
  • Static Electricity
  • Statistics and M&M’s
  • Stem-less Flowers
  • Super Strength Egg
  • Sweet Erosion
  • Temperature and CPUs
  • Thirsty Rocks
  • Tornado Demonstration
  • Translucent Egg
  • Transpiration in Plants
  • Typing and Speed
  • Vibrating Coin
  • Volcanic Gas
  • Water and Living Things
  • Water Displacement
  • Water Evaporation
  • Water pH
  • Your Planetary Age