Young Money

Online Banking

100

What is Online Banking

A system that allows individuals to perform banking activities over the internet

200

How can you be sure a web site is safe to use for banking purposes?

The URL will contain "https" which means it is a secure website.

300

What is Phishing?

Emails that are meant to look as if they are your bank asking for personal information such as username, pin number, passwords or any other personal information.

400

What is the CDIC, and what can they tell you about banks?

The Canadian Deposit Insurance Corporation, they can tell you whether an online bank is insured and safe to deposit with.

500

What are 3 Advantages of using online banking

• Allows you to skip the lines (or save time) and access your banking information in a matter of several mouse clicks. • Many online banks have higher interest rates for deposits, and lower rates for loans. • Online banks use simple language to make it extremely easy to understand. • Allows for direct deposit of your paycheck

Chequing/Savings Accounts

100

What is the difference between a single or a joint account

The choice of whether to open a checking account in your own name only or with a co-account holder is the first thing you should determine. Even for married account holders, don't assume a joint account is the only way to go--there are pros and cons to each option. If you choose a single checking account, you don't have to worry about your co-account holder overspending and emptying out your account, and there are fewer coordination issues. However, with this control you lose some simplicity. A joint account is probably easier if you want to split monthly bill-paying responsibilities with your co-account holder, for instance.

200

Why would you choose a free account over a fee account?

You can make around 5% on your cash just by keeping it in a a high-interest checking account. Depending on how much cash is sitting there from day to day, rewards or high-interest checking may be worth the cost. But if your checking account is regularly at a low balance, you're better off choosing a freebie and avoiding monthly fees.

300

How can you get free stuff when you open a new bank account?

Checking accounts are valuable enough to banks that they are often willing to pay you to open an account, or at least give you a free gift or two. When opening a checking account, ask what the bank can give you as a gift. Maybe it's cold cash, maybe it's a coffee mug, but it more than likely it will be something.

400

What is a money market account?

Money market rates can be quite appealing, you have more investment options, and you can still write checks. Maybe what you want is not a checking account, but its first cousin. Money market accounts have become a viable alternative to checking accounts for many bank customers.

500

What are the reasons we need to talk to tellers?

• The more electronic a bank can make your checking account, the cheaper you are as a checking account customer. This is one of the fundamental rules of modern banking. • Figuring out how electronically you are willing to bank is a vital consideration when choosing a checking account--and a bank. If you need the human connection, you may want to avoid internet-only banking or checking accounts that only allow a small number of free teller transactions before you have to start paying.

Building Credit

100

What is credit?

Credit is your reputation as a borrower. It tells others how likely you are to repay your loans. Credit is made up from information about your borrowing history. Most of the information comes from your credit reports.

200

What are two ways to build credit?

Use a co-signer on your first few credit accounts. Lenders will consider the co-signer’s existing credit. The co-signer essentially ‘vouches’ for you while you build credit. Note that this is a big responsibility – you can cause major headaches for the co-signer if you don’t pay as agreed Get a credit card with any reputable institution that will give you one. Again, you have to make sure they’ll report your timely payments to the credit reporting companies. Of course, you have to always pay at least the minimum before the due date.

300

Generally, who needs to build credit?

Anybody without a history of using credit needs to build credit. You never know when the need for a loan will arise, and it is a lot easier to get a loan with a solid credit history. Young adults who are just starting to learn about financial responsibilities need to build credit, and recent immigrants to the U.S. also find themselves without a credit history.

400

What are the risks of building credit?

Remember that credit can be a useful tool, but it can also get you in trouble. After you build credit, you may be inundated with offers. Banks, credit card companies, and others will want to loan you money because they'll know you're a good borrower. Don't take them up on every offer -- only borrow money when it truly benefits you.

500

What are 4 of the 5 ways that your credit score can be affected?

• 35% - Payment History: Negative information. • 30% - Debt: How much and what type? • 15% - Length Of Credit History: This is how long you've had credit • 10% - Credit Diversity: This is the different types of credit experience you've had • 10% - Inquiries (hard): This is when a creditor checks your credit report