I would like to build a bench on my d...

First, I would suggest getting a circular saw. The B&D 2200 is a good a reasonable choice, its also cheap (look at Walmart).

Regarding wood, I would suggest MDF, if you have a limited budget and it doesn't need to put a lot of weight, otherwise use pine.

I don't think MDF will hold up well outdoors. I would suggest a treated wood, or better yet Cedar or Teak.

Without a bit more information, this is hard to answer.  What size of a bench (how long, how deep?)  Does it need to compliment other features of deck (in terms of wood, color, style)?

As knotboy indicated, MDF (medium-density fibreboard) is a poor choice for outdoor use -- it does not handle moisture well at all, has insufficient strength, and is extremely heavy.  Properly finished pine, redwood, cedar, or teak are all good choices.  Teak has the best weather-resistance properties, but is both expensive and hard to "work."

If you have limited (or no) construction experience, I would strongly encourage you to get a book on outdoor furniture construction and read a little bit about what you're getting yourself into.  A bench, surprisingly, is not the simplest of projects to start.   It *seems* like it would simple, but ensuring that your construction is safe and stable is harder than it looks.