Checking/Saving accounts and types of Savings
Percentage of savings per age
Traditional saving vs Online savings account
Banking fees
online
and mobile banking
and mobile banking
100
What is a checking account and what are its methods of access?
A checking account is a deposit account that facilitates easy withdrawals, deposits, and fund transfers. It can be accessed through checks, ATMs, and electronic debits.
100
What is the recommended savings goal as a percentage of your income for someone aged 25, according to the provided rule?
The recommended savings goal as a percentage of income for someone aged 25 is 17%.
100
Why might you consider a high-yield online savings account?
A high-yield online savings account generally offers significantly higher interest rates than regular accounts, which benefits the account holder. After a Fed interest rate hike, these rates are likely to increase further.
100
Using ATMs that aren't affiliated with your bank can result in charges from both the ATM provider and your bank. What is this fee called?
Out of network atm fee
100
What are the versatility options offered by mobile banking according to the text?
Logging into a bank’s mobile website
Using a mobile banking app
Text message (SMS) banking
200
How does our infomation suggest managing short-term funds to avoid impulsive spending, and what are the proposed options?
To avoid impulsive spending, the text suggests options like hiding the account or using a high-yield savings account for better interest and distance from regular funds.
200
If your annual income is $70,000, how much should you have saved by age 40, based on the given guideline?
If your annual income is $70,000, you should have $210,000 saved by age 40 based on the guideline (three times your income).
200
When might an online account be preferable regarding fees?
An online account might be the better option if you want to pay fewer fees. Many high-yield online savings accounts have minimal or no fees, meaning you won't have to worry about minimum balances or excessive withdrawals. For example, the new Apple savings account has neither of these requirements.
200
Savings account holders may face this fee if they make more withdrawals and transfers than the allowed number in a given month. What is it?
Excessive transactions fee
200
What are the key features of the online financial transactions mentioned in the text
Provide convenience to customers who want to manage their finances while on the go.
300
What is the key difference between a checking account and a savings account in terms of fund access and usage?
Checking accounts offer immediate and continual access to funds, while savings accounts accrue interest and have withdrawal restrictions, typically designated for specific financial objectives.
300
According to the rule, how many times your annual income should you have saved by age 50?
By age 50, according to the rule, you should have saved six times your annual income.
300
What kind of individuals might benefit most from an online savings account?
People comfortable without direct access to a physical bank branch might benefit most from an online savings account. Though these accounts are online, they can still be accessed via a debit card.
300
This fee is charged by many banks for the privilege of keeping your money in an account with them on a monthly basis.
Monthly maintenance fee
300
What is the registration process to use online banking, as described in the text?
Generally through a bank’s website under a private profile, and with a desktop or laptop computer.
400
What is a credit card, and how does it differ from a checking account?
A credit card allows users to make purchases on credit, borrowing money up to a limit and repaying it later with added interest. It differs from a checking account in its credit-based nature.
400
What is the recommended savings goal for someone aged 30, based on the given rules?
The recommended savings goal for someone aged 30 is the equivalent of their annual salary.
400
In what scenarios might a regular savings account be more convenient?
A regular savings account might be preferable if you value the in-person interaction provided by a physical bank branch. Also, if you prefer to have all your banking services in one place, including checking accounts, personal loans, mortgages, among others.
400
What fee is charged when you make purchases that exceed your balance in a checking account?
Overdraft fee
400
What financial activities can be carried out in both mobile banking and online banking, according to the information provided?
Customers can perform financial transactions while banking online, like paying bills or transferring money from one account to another.
500
What is the purpose of an emergency fund, and what types of unexpected expenses does it typically cover? Additionally, what is the suggested duration for covering living expenses with an emergency fund?
An emergency fund is for unforeseen expenses or financial crises, covering costs like car repairs, medical bills, or sudden income loss. The suggested duration is 3 to 6 months' worth of living expenses.
500
If a person earns $60,000 per year, what is the suggested savings amount by the time they reach age 60, following the provided savings guidelines?
If a person earns $60,000 per year, the suggested savings amount by the time they reach age 60 would be eight times their annual income, which is $480,000.
500
Why is it suggested to maintain a regular savings account if you make frequent withdrawals?
To fully benefit from a high-yield online savings account, it's necessary to maintain a relatively stable baseline balance. If you're accustomed to making numerous withdrawals from your account, you won't be maximizing the offered interest rate. In this case, a regular savings account would be more suitable.
500
Transferring money to another account can result in this additional charge. What is it?
Wire Transfer Fee
500
What services do online transactions include?
include services that are traditionally offered in local offices without having to travel there