Checking Accounts
True or False:
Do you earn interest on your deposits?
False
True or False:
Do you earn interest on your deposits?
True
What is a maintenance fee?
An amount charged for simply having an account open with a bank.
What should you do when you see an error on your bank statement?
Contact the bank immediately.
How often are bank statements released?
Monthly
Name two different ways to withdraw money from a savings account.
Visit a bank teller to make a withdrawal
Transfer to a checking
Use online bill pay
ATM card (uncommon)
What is an Overdraft Fee?
When a customer doesn't have enough money in their account to cover the transaction made, the customer is charged a fee.
$250,000
Name three different ways to withdraw money from a checking account.
ATM withdrawal using a debit card
- Visit a bank teller to make a withdrawal
- Make a purchase using a debit card
- Write a check
- Use online bill pay
- Transfer money to another account
Describe two features of a Certificate of Deposit.
A certificate of deposit (CD) is a savings account that pays interest on a FIXED amount of money for a SET period of time.
- You cannot add money to this account
- You cannot take money from the account (until the time period is up)
- FDIC insured
What is a transfer fee?
An amount charged by financial institutions when funds are moved from one account to another
What is a foreign transaction fee?
An amount charged for using a debit card to make a purchase in another country
Name four different ways to deposit money into a checking account.
Make a cash deposit at your bank
- Deposit a check at your bank
- Use an ATM to deposit your money
- Make a mobile deposit (check)
- Use Direct Deposit
- Transfer money from another account
Describe Compound Interest.
Earning interest on previously earned interest.
What is an out of network ATM fee?
An amount charged for using an ATM that does not belong to your bank.
What is FDIC insurance?
FDIC insurance protects deposits in insured banks in the United States in the event of a bank failure.
What is one advantage of choosing a community bank over a national bank.
-Community banks typically have LOWER fees and charges when compared to a national bank
-Community banks typically give back and support the local community
What is one way to MAXIMIZE INTEREST on money if you want to open a savings account?
- Deposit your money as early as possible
- Choose a bank with a high interest rate
- Leave money in the account for as long as possible
What is ONE way that you could potentially avoid a monthly maintenance fee on your account …
- Finding a bank that offers accounts with no monthly maintenance fee
- Meeting a monthly minimum balance requirement
- Having both a checking and savings account with the same bank
Fill in the Blank
What is true about being a member at a credit union vs a member of a community or national bank?
______ interest rates and _____ fees.
HIGHER interest rates and LOWER fees