The Essential Checking Account
Banks are insured by this 4 letter institution, and, insured up to this amount.
FDIC, $250,000
What is the largest frequently charged fee on checking accounts?
Overdraft fees
What two personal bank numbers are on a check, and what is their location?
routing number and account number, lower left and corner
In your own words, explain what direct deposit is.
Your paycheck’s funds are deposited electronically straight into your account directly from your employer. To use it, your employer will need your routing number and account number.
Must be part of a specific member group to join
Credit Union
To ensure bills are paid on time, you could utilize these two online banking features.
Direct deposit and online bill pay
How much money do they recommend keeping in your checking account? How much do they recommend for your emergency fund (a savings account)?
Keep one full paycheck in your checking account at all times, which means you need more than that in the account for day to day expenses. And keep 6 months worth of expenses in your savings account in a rainy day fund.
Which is the process of comparing your own records to the records provided by your bank?
Reconciling your checking account
Setting your bank to send your rent to the landlord monthly on the 25th is an example of what?
Online bill pay
Profits are given to shareholders
Banks
What is the main difference between a debit card and credit card?
Debit cards are cards that draw money from a checking account while credit cards are cards that make purchases with borrowed money, which you must then pay back after a certain amount of time has elapsed, probably with interest
Checking account transactions are NOT reported to the credit bureaus and do not affect your credit score. Why is it still important to manage your checking account well?
Banks can see your checking behavior by a check system report and may not let you open a new checking account if you frequently close accounts or have accounts in bad standing.
Also want to avoid fees and practice good financial management at a young age as preparation for adulthood.
Name the different fields on the front of a check you must fill out to write it properly.
Date, pay to, Amount it's for (both numerically and spelled out, sign or endorse in the lower right.
Using online banking, you can request transfers, pay bills, and automate your savings without visiting the bank branch are advantages of what?
Online banking
Interest customers earn on deposits tends to be higher
Credit Union
People who don't belong to the traditional banking system will most likely deal with these with their paychecks.
Fees at a cash checker service
When money is put into your account, it is listed on your statement as a (blank). When money is taken out of your account, it is listed as (blank).
credit, debit
You receive a check for $50 from your Aunt Louise for your birthday. You go to an ATM to deposit the check into your checking account. How should you endorse the check?
Sign your name and write "For Deposit Only" and your checking account number on the back of the check
In what ways is Apple Pay more secure than using a debit card?
Your name, debit card number, and security code are not shown to the retailer.
When you open a checking account for the first time, you need to have each of these items
Name one way a prepaid card is similar to a debit card.
List the three mobile banking alerts everyone should activate and briefly describe each.
Sends you an alert (usually a text or email) when your bank balance drops below a certain amount that you set. This can help you avoid overdraft fees.
Your paycheck is sent electronically to your account and you receive an alert when the money is available and ready for you to use.
This alert notifies you if there is any unusual behavior on your bank account and helps you avoid fraud.
What aspects of managing your account were probably more difficult before online banking was available?
Before opening an account at your chosen bank, list two questions you’d want answered.