Checking & Savings Accounts
What do you use to make transactions to take money out of your checking account?
debit card
Why do banks charge so many fees?
to make money
A monthly fee that some banks charge to provide access to checking or savings accounts
maintenance fee
Andrew saved $1,000 from his summer job. Which of these account types are best for him if he doesn't need access to the money for a number of years AND wants to earn the highest interest rate?
Certificate of Deposit (CD)
months
What a positive of keeping your money in a savings account?
- interest
- keeps it safe
What do banks offer to protect you if you accidentally charge your card more than you have in your checking account?
overdraft protection
Protection provided by the Federal Deposit Insurance Corporation; protects the deposits of customers against loss up to $250,000 per account
FDIC Insurance
If Will follows the 50-30-20 rule, he will be putting 50% of your monthly income toward _______________, 30% of your monthly income toward _____________, and 20% of your monthly income toward ______________.
needs, wants, savings
Someone is unable to pay their bills until her paycheck comes in. They are living ________ to _________
paycheck to paycheck
Traditional, Online, Money Marketing Account, Certificate of Desposit
What do banks charge you in addition when they charge you for overdraft protection?
fees & interest
An automatic electronic deposit of net pay to an employee's designated bank account
Direct Deposit
Michelle gets a text alert from the bank that her account balance has dropped below $100 after a series of $20 ATM withdrawals. She has not used her ATM in over a week and wonders what she should do. What would you recommend?
contact the bank
You employer putting your paycheck into your checking account is
direct deposit
If you have 30$ in your checking account but buy a new game at Target for 50$ with your debit card, what will you be charged?
overdraft fee
If you can't go into a physical bank, what is another option?
online banking
A fee paid to you for keeping your money in an account OR a fee charged to you for a loan or credit card
Interest
Justin uses Venmo to pay Seva for pizza. This is a ______ to ______ payment
person to person
What allows you to request transfers, pay bills and automate your savings without visiting the bank branch
How often do customers typically receive a bank statement for their checking account?
monthly
What is the money called that banks GIVE you for having money in your savings account?
interest
A loan banks offer to their customers when they try to withdraw more funds than they have in their account, usually for a fee and with interest
Overdraft protection
Greta declines overdraft protection. She uses her debit card for a 50$ purchase, even though she only has 20$ in her checking account. What will happen to her card?
Give 3 examples of savings accounts and WHAT you would use them for.
Traditional Savings Accounts - to keep money safe, to earn interest, to store your money
Online Banking Account - to keep money safe, to earn interest, to store your money, all without going to a physical bank
Certificate of Deposit - to keep a large sum of money in an account to earn interest, but OVER TIME IT CAN NOT BE TAKEN OUT FOR A SET TIME
Money Market Account - to keep a large sum of money in an account, HIGH INTEREST, minimum requirement for deposit is HIGH