Interest
What is interest?
Money paid to you by the bank for being able to use your money.
............is when you put money into your savings account.
What is a deposit
What card is linked directly to your bank account?
Debit Card
What is interest rate?
The percentage that you are being paid for your money
What is the definition of saving?
What is setting money aside to be used at a future date
Name two items that checks are primarily used for?
Rent, mortgage, bills
Which card charges you interest if not paid in full at end of the month?
Credit Card
What is the average interest rate paid to you by a bank on a savings account?
Less than 1% about 1/3 of a 1%
What does EFT stand for?
What is Electronic Funds Transfer
Name three ways you can withdraw cash from your checking account.
What is an ATM, bank teller, check written out to cash, cashback at store
Which card allows you to access account information from an ATM?
Debit Card
Do banks pay interest or charge interest?
Both!!! They pay interest on accounts and charge interest on loans
What is compounding interest?
when money is earned on the total amount in an account including initial deposit plus all prior interest
A minimum account balance is.....
amount of money you must keep in an account to avoid fees or the account being closed
Can receive benefits like cashback or reward points
Credit Card
Offer lower interest rates on loans? (meaning they charge you less)
Credit Union
Chris deposits $1000 in an investment account. He is receiving a 6% return. How long will it take for his money to double?
What is 12 years
What are the three main purposes of saving?
1) Emergency fund 2) Short term goals 3) Investing
What are three advantages of online banking?
Access 24/7
no checks need to be written
transactions are automatic
no fee to use these services
What does ATM stand for?
Automated Teller Machine
What does the FDIC do?
They insure up to 250,000 that is held in a bank account, per person, per insured bank