Checking Accounts
What is the major difference between using a debit card and using a credit card?
Debit comes from money in a bank account, credit card is a loan that you will pay back later
What is one type of alert that you can set up on your account to prevent fees?
Low balance, mobile deposit, unusual activity
What is the difference between a one time payment and a recurring payment?
One time is only approved once and will not happen again. Recurring payments happen at the same time on a regular schedule without any further approval.
When should you endorse a check?
Right before depositing it.
:)
Which of the following will most likely take the longest to show up on your bank statement? An online payment to Netflix, a debit charge from Walmart, a check written to your landlord.
The check
What is overdraft protection?
Allows your account to dip below zero and either transfer money from another account for a fee or charge you an overdraft fee
What is an advantage of online banking?
View daily transactions, balances, transfer money, pay bills, alerts, move money into savings easily
What is the endorsement called that is just the signature of the check recipient?
Blank endorsement
Where is the best place to store my debit card pin number? A. written on the back of the card B. On a piece of paper in your wallet or purse. C. In your phone notes. D. None of the above.
D. None of the above
How much money in an account does the FDIC cover up to?
$250,000
What are two types of fees that you could be charged on a checking account?
Overdraft fees, monthly service fees, paper copy of statement fee, atm fee
What is one safety measure you should take when using P2P apps?
Read their policies before using, use a pin number or other safety measure, set alerts for transactions, only use P2P with people you know, link to an external account that is federally insured.
Fill in the following equation. Ending Balance = Previous Balance + __________________ - Withdrawals - __________________
Deposits, Fees
You are selling your car to a person that responded to your online ad. They say they can pay you with a check. Should you accept the check? Why or why not?
No. There is no guarantee that the check won't bounce.
If money is deposited into my bank account from a personal check, how long do I generally need to wait until I can access that money?
1-7 business days
Banks are allowed to change their fees and policies if they do what two things?
Put it in writing and notify the customers
What does it mean to authenticate a transaction?
Sign or pin number for physical cards, id or phone pin for apps
At the bottom left of Debbie's checks there are these numbers. |:342832992|: 1102844925. What does this mean? (Be specific)
342832992 is the bank's routing number
1102844925 is Debbie's checking account number
Banks make the most money on which fee?
A. Overdraft fees, B. Wire transfer fees, C. Check printing fees, D. Interest expense
A. Overdraft fees
Fees at check cashers, bills have to be paid with cash and in person, takes time and money to get prepaid cards
Mike has $30 in his account and overdraft protection. He spends $3 on a pop, then $14 on lunch, then pays his utility bill for $50. All of the charges are using his debit card. His bank reorders and charges 2 overdraft fees of $20 each per day. How much will he have to pay back to the bank and how much will he pay in overdraft fees?
He owes the bank $37 plus $40 in overdraft charges. $77 total.
What else could you use a digital wallet for (2 things)?
Tickets, boarding passes, link your physical cards in your phone, loyalty cards, gift cards
What is an outstanding check?
A check that has been written, but hasn't cleared the bank yet.
You are going on a trip and decide to budget around $150 in spending money. What is one reason that bringing a checkbook not the best option for this trip?
Slow process, many places might not accept out of town checks, if you lose it someone may gain a lot of your information, it is not practical to write a check for something like a $2 soda.