Financial Institutions
Money put into savings and checking accounts in a traditional corporate bank is usually insured by the FDIC up to $__________?
$250,000
This type of account is known as a "put and take" account
Checking
What is the highest possible credit score you can have?
850
This is when your paycheck gets electronically deposited into your checking account on payday.
Direct Deposit
Trustco, Keybank and Bank of America are all known as (1) ___________ institutions (answer is not "financial") or (2) _____-________ banks.
Answer either of these two to get the points
1) Deposit
2) Full-Service
Why should you balance and monitor your bank account activity
1) Know how much money you have
2) Avoid overdrafting
3) Be aware of your spending habits
4) Watch out for fraudulent activity
5) etc?
Your creditworthiness is directly related to your _________ __________
Credit Score
This is a fee you get charged when your checking account goes below zero dollars following a transaction
Overdraft
What are people usually most concerned with when signing up for deposit insurance with a financial institution? (one word answer)
Safety
When selecting a bank or a credit union to open a checking account with, what are 2 things you should look into?
1) Interest rates
2) Minimum balance required
3) Fees (annual, maintenance, etc.)
4) Available services (ATM, mobile apps, etc.)
What does APR stand for? OR what is this also known as?
Annual Percentage Rate OR interest rate
This allows bank users to monitor their accounts simply by logging in.
Mobile/online banking, mobile bank apps
This financial institution is run by its own members
Credit Unions
A __________ __________ is used to track money coming into and out of your checking account
Checkbook Register
What are two differences between credit accounts and debit accounts?
1) One charges interest, the other doesn't
2) One pays for things right away and the other can be paid off later
3) One directly deposits paychecks, the other does not
4) One earns rewards while the other does not
etc....
This is charged to your bank account at the beginning or end of the year just for having an account with your bank (depending on the one you choose...)
Annual fee
Name 5 different services that traditional banks typically offer.
1) Checking and Savings accounts
2) Debt management
3) Budgeting
4) Loans (Auto, Students, Home, etc)
5) Investing
etc...?
A consumer who overuses their credit card runs the risk of...(name 3 things)
1) Going broke!
2) Raising interest rates on loans
3) Not getting approved for a loan
4) Not being able to make payments on time
5) Snowballing debt due to compounding interest
6) Lowering your credit score
etc...?
What is different in loans for people who have good credit scores versus people who have lower credit scores?
People with lower credit scores will pay higher interest rates on loans than those with high scores.
This is a calculation that shows that you aren't maxed out on all of your credit cards...This is also represented as a ratio that shows how much of your credit maximum is being used.
Credit Utilization Ratio