BANKING
What are the two main types of banking accounts?
Checking and Savings
What is Interest?
Money paid regularly at a particular rate for the use of money lent, or for delaying the repayment of a debt.
What is saving?
The money one has saved, especially through a bank or official scheme.
How liquid is a Checking Account?
The most liquid of all the savings tools. A checking account allows you to deposit money for safe keeping and then use that money at any time by writing checks, using a debit card, and/or withdrawing cash from the account.
What was the largest cash robbery ever?
about $18.9 million
What is the difference between the FDIC and the NCUA?
the FDIC insures banks and the NCUA insures credit unions.
What is a typical interest rate for savings accounts?
0.05% per month
What are the four main savings tools?
Checking Account, Savings Account, Money Market Deposit Account, and Certificate of Deposit(CD).
How liquid is a Savings Account?
a Savings account is the most liquid besides Checking Accounts.
How much ddo the top five banks hold in assets?
$6,775,079,249,000.00 (six trillion, seven hundred seventy-five billion, seventy-nine million, two hundred forty-nine thousand dollars)
Up to how much money does the FDIC and NCUA insure a depositor?
$250,000
what is the typical savings rate for CDs?
2.25% per month
What are three ways to keep from spending as much?
Budget, Set Savings Goals, Pack Lunch, Budget Shop, Record Expenses, Use Direct Deposit to Your Advantage
How liquid is a Money Market Deposit Account?
Less liquid than Checking and Savings Accounts because these accounts have minimum balance requirements.
When was the federal bank first started?
1791
What is a typical overdraft fee for a bank?
$35
Will the money in your checking account collect interest?
No
What is a typical percentage to save from each paycheck?
20% (50% 30% 20% rule)
how liquid is a Certificate of Deposit (CD)?
The least liquid of all Savings Tools, the money cannot be touched until the maturity date, if taken out early there will be fines.
What is the largest bank in the United States?
JP Morgan Chase and Co.
What are the differences between banks and credit unions?
BANKS: For-profit institutions that may be privately owned or publicly traded
CREDIT UNIONS:Nonprofit institutions owned by members
BANKS:No membership required
CREDIT UNIONS:Membership required
BANKS:Generally lower savings rates and higher fees
CREDIT UNIONS: Often higher savings rates and lower fees
BANKS: FDIC provides deposit insurance
CREDIT UNIONS: NCUA provides deposit insurance
At what percentage is the value of money decreasing every year?
Money in the US is decreasing at a continuous rate of 2% per year.
what percent of Americans save very little or nothing?
65%
Why is putting money into an account the best choice?
Your money will be more secure, and you will collect interest.
What percent of Americans have $1000 or less in savings?
58%