Saving Money

Where you save yourmoney often depends on what you are saving for. If you are saving to buy adictionary or to go to a concert,then probably keep your money somewhere

in your room.

If you are savingfor a big purchase like a mountain bike or a school trip,where would you saveyour money?

One place to savemoney is the bank.Putting your money in a savings account will help your moneyearn more money. If you put your money in a piggy bank（猪形储蓄

罐）, one yearlater you'll still have the same amount of money you put in?If you put yourmoney in a savings account,one year later,you'll have more money than you put

in.Why?

When you keep yourmoney in a bank,your money earns interest.Interest is the amount of money abank pays you to use your money.The bank uses your money(and the

money of otherpeople,too)to loan money to people and businesses.

The bank will sendyou a statement several times a year. A bank statement tells you how much moneythere is in your account. It also tells you how much interest you have

earned.If you leaveyour money in the bank,you can watch it grow!

Another way you cansave money is to buy a certificate of deposit or CD.If you have some money thatyou don't need to use for a long time,this is a good way to make your

money grow. You canbuy a CD at a bank.You agree not to use the money for a certain period oftime.That period might be from six months to five years.

You can't touch yourmoney during that time.If you do,you must pay a penalty,or fee.

Since the bank isusing your money for that time period,it will pay you interest.You will earnmore interest with a CD than in a savings account. Can you guess why?It's

because you promiseto leave your money in the bank for a certain period of time.Banks paydifferent rates of interest.So, you may want to compare rates in newspaper ads

before buying a CD.

Interest is theamount of money which_______.

A.a bank lends topeople

B.a bank loans tobusinesses

C.a bank pays you

D.a bank uses