Checking Basics
What is a checking account?
A bank account used for everyday spending
What does FDIC stand for?
Federal Deposit Insurance Corporation
You cash your check at a store instead of a bank, what is this called?
Check-cashing service
What is a maintenance fee?
Monthly fee for having an account
What is 1% as a decimal?
0.01
Name one thing you can do with a checking account
Pay bills / use debit card / withdraw cash / deposit money
How much money does FDIC protect?
Up to $250,000
Why do people use check-cashing services?
No bank account / need quick cash / convenience
What fee might you pay using an ATM outside your bank?
ATM fee
What is 2% as a decimal?
0.02
True or False: A checking account is used to borrow money
False.
It’s FALSE because banks DO offer FDIC insurance.
Banks actually protect your money, not ignore it.
What is overdraft?
Spending more money than you have
What is a downside of check-cashing services?
Fees (they cost money)
What fee happens when you spend more than you have?
Overdraft fee
Find the fee: 2% of $700
$14
Fee=Check Amount×Decimal Form of Percent
700×0.02=14
What type of purchases is a checking account best for?
Everyday purchases
What is overdraft protection?
A service that helps cover transactions but may charge fees
Your account has $20 and you spend $30, what happens?
Overdraft
What is a per check fee?
Fee for each check used
Find the fee: 1% of $900
$9
Give TWO features of a checking account
Debit card + paying bills (etc.)
What is the difference between unbanked and underbanked?
Unbanked = no account /
Underbanked = has account but uses other services
Your job pays you on a prepaid card, what is it called?
Payroll card
Name TWO types of checking account fees
Maintenance, ATM, overdraft, per check
Name one peer-to-peer payment app
Cash App / Venmo / Zelle / PayPal