Banking Basics
This type of bank service allows customers to send money to family overseas.
What are wire transfers
This type of bank account allows your money to earn interest but is not typically used for everyday purchases.
What is a savings account?
Unlike savings accounts, checking accounts are not usually opened to do this
What is earn interest on deposits?
To avoid scams on P2P apps, you should always do this to check suspicious messages
What is verify with your bank directly?
According to the 50/30/20 rule, Keon should save this much from a $1,000 paycheck.
What is $200?
Banks make most of their profit by doing this with the money deposited by customers.
What is lending money at higher interest rates than they pay on deposits?
To maximize compound interest, you should do this with your money.
What is deposit it early into the highest-rate account possible?
Being a member of a credit union usually means these two advantages.
What are lower interest rates and lower fees?
To send money with a P2P payment app, you typically need this information about the recipient.
What is their email address or phone number?
This savings strategy encourages you to set aside money before paying for other expenses.
What is pay yourself first?
Online banks usually offer this advantage compared to traditional banks.
What are higher interest rates on savings accounts?
Unlike savings accounts, certificates of deposit require this
What is leaving money in the account for a set period of time?
These fees occur when you spend more than the money you have in your account.
What are overdraft fees?
The main purpose of a digital wallet is to allow this type of transaction.
What are contactless transactions with businesses?
People who struggle to cover basic needs each pay period are said to live this way.
What is paycheck to paycheck?
If you find an error on your bank statement, this is the action you should take.
What is call the bank to investigate?
The recommended size of an emergency fund is this many months’ worth of expenses.
What is 3-6 months?
You cannot avoid ATM fees by withdrawing money from this type of account instead of your checking.
What is your savings account?
Having your bank automatically send your rent to your landlord each month is an example of this.
What is online bill pay?
Credit cards can make saving harder because they make this easier.
What is spending money?
This small, hard-to-see security feature is printed on modern checks to prevent fraud.
What is microprinting?
To avoid losing purchasing power, your savings rate of return should at least match this.
What is the inflation rate?
A common disadvantage of payroll cards is that many of them charge these.
What are fees?
Banking with smaller banks does not necessarily keep you safer online. This is a myth about preventing fraud.
What is “small banks are less frequently targeted”?
People may be unbanked for many reasons, but not having this type of account is not one of them.
What is a credit card account?