Checkings and savings accounts
When you want to save money for the future, what type of account is normally used?
Saving account.
This type of fee specifically charges you from $30 to $35
Overdraft fee
What type of savings is suitable for goals expected to be achieved within one to three years?
Short-term savings are suitable for goals expected to be achieved within one to three years
Mention two ways of saving strategies.
Take record of your expenses, reduce unnecessary expenses, limit impulse purchases, prioritize high-interest debt.
How do mobile and online banking provide convenience to customers?
Both options allow customers to manage their finances on-the-go, providing 24/7 access and reducing the need to visit physical bank branches.
What is the regulatory limitation on transfers for savings accounts?
Six per month or statement cycle, so day-to-day access isn't feasible.
How much of the purchase or withdrawal is taken if a Foreign transaction fee is applied?
About 1% to 3% of the purchase or withdrawal
Where are short-term savings typically kept to ensure quick access?
Short-term savings are typically kept in easily accessible accounts, such as savings accounts or money market accounts, to ensure quick access
This strategy helps minimize the total amount paid in interest over time, freeing up more money for savings once debts are cleared.
Prioritize High-Interest Debt
Why is it important for customers to learn about both mobile banking and online banking?
Learning about both methods helps customers better manage their finances by understanding the features and capabilities of their bank's mobile banking app and online banking website.
What distinguishes a saving account's primary purpose from that of a checking account?
A savings account is used primarily for saving money for a long-term need or goal, while a checking account is used for accessing your money for daily use.
These fees are charged when a customer's account does not have enough funds to cover a transaction, such as a check or an automatic payment.
Non-sufficient funds (NSF) fee
What is the primary purpose of long-term savings?
The primary purpose of long-term savings is to set money aside for future financial goals typically more than three years away
According to the age of 50, how much money should a person have saved?
Six times their income.
What are some characteristics of online banking?
Online banking is conducted over the internet through a secure website, the bank may exist online only, and users must register online, creating a login ID and password.
These accounts typically offer higher annual percentage yields (APYs) and are accessible 24/7 via the Internet.
online savings accounts
What are maintenance fees for? Does every bank ask for a maintenance fee?
Not all banks ask for a maintenance fee. If they do they will charge it for you to keep your money in an account with them. Its purpose is directed to help cover operating costs.
Name some examples of major life events that long-term savings are often earmarked for.
Examples of major life events that long-term savings are often earmarked for include retirement, buying a home, or funding a child's education
According to the age of 30, how much money should a person have saved?
the equivalent of your annual salary saved.
Name some basic activities that customers can perform through online banking.
Customers can view account balances, print statements, view check images, pay bills, transfer money, and apply for loans or credit cards.
Unlike online savings, traditional savings accounts may have these, such as maintenance fees and minimum balance requirements.
fees associated with traditional savings accounts
What is the difference between the domestic and international wire transfer?
Domestic wire transfers occur within the same country and can range from $10 to $30. International wire transfers involve sending money across borders and the transfer can get up to $50.
In which types of financial vehicles are long-term savings generally invested?
Long-term savings are generally invested in vehicles that offer potential for growth over an extended period, such as stocks, bonds, mutual funds, or retirement accounts like IRAs or 401(k)s
Why is it recommended to plan purchases in advance?
It is recommended since it allows you to distinguish between what is essential and what is not, ensuring that your purchases align with your financial goals.
What is the convenience of online banking?
Online banking provides 24/7 access, location independence, and the ability to conduct financial transactions without being tied to a specific geographical location.