Savings Accounts
Why do we pull money from our savings account?
For big expenses or emergencies.
Why do we pull money from our checking account?
For monthly bills, day to day expenses
What is a budget?
A plan for how we use and spend money.
Two examples of why we would have money in a savings account.
Vacation, hotel, flights, buying a house, hospital bills, car accident bills
Type of withdrawals that are examples of why we would pull money from our checking account.
Gas bill, electric bill, gym bill, internet bill, phone bill, mortgage/rent payment, car payment, groceries, daily expenses
What is a bank account?
An account where money is stored. It is maintained by a bank or other financial institution in which the financial transactions between the bank and a customer are recorded.
What is the definition of a savings account?
Money that is used for emergencies or big expenses.
What is the definition of a checking account?
Money that is used for monthly or day to day expenses
Why should you budget your money?
What does APY stand for?
Annual Percentage Yield
Name two ways you could withdraw funds from your checking account
ATM/Debit Card, Checks, In-person withdrawal, P2P transactions
What is the difference between a credit card and debit card?
A debit card is saved money you have in an account. You can not exceed the limit in this account when buying things.
A credit card is an account where you have a certain amount of money you can spend. This amount of money doesn't have to be the amount you have in a saved account. A company gives you a certain amount of money to spend. This is called your credit limit.
How is interest typically calculated?
Earned daily, compounded monthly, posted montly
What types of overdraft protection are available for checking accounts?
Smart overdraft sweep; Overdraft Privilege; DDL
What kind of account can a person open to save for retirement?
Individual Retirement Account