Savings Accounts
Savings accounts are designed for ______, checking accounts are designed for _______.
Saving,spending
Credit unions are owned by _______
Members. If you have a credit union account, you are a part-owner of the company!
What is a 529 Plan used for?
Education
This type of savings account is found at most banks. It earns low interest.
Traditional savings account
Between banks and credit unions, who offers lower interest rates on loans?
Credit unions
What does it mean if a savings account is "tax-deferred"?
The interest earned (gains) is not taxed.
This type of savings account locks your money into the bank for a set amount of time, but pays higher interest in return.
Certificate of Deposit
What does APY stand for?
Annual Percentage Yield
What is the tax rate (%) for qualified expenses from a specialized account? (Using HSA for health, 529 for education, etc.)
0%. Qualified expenses are "tax-free".
This type of savings account is mostly found online. It has higher interest rates than most types of savings accounts.
High yield savings account
What is goal of a bank?
To maximize profits and make money for investors
Of the retirement accounts we discussed, which is the only one that has no taxes on money withdrawn?
Roth IRA. Traditional IRA and 401k apply tax when money is withdrawn.
This type of savings account is a balance between savings and checking accounts. It allows you to write checks and use a debit card.
Money Market Savings Account
What is the easiest way to build your savings account balance?
Pay yourself
What makes a Health Savings Account (HSA) different from a Flexible Spending Account (FSA)?