Understanding Banking and Financial Products

Front

What is a Certificate of Deposit (CD)?

Back

A savings instrument that requires a deposit for a fixed period of time, during which there is a penalty for early withdrawals.

Front

What is direct deposit?

Back

A method of electronically transferring funds from an employer directly into an employee's bank account.

Front

When is the best time to start saving for retirement?

Back

As soon as you have your first full-time job.

Front

What should you do when writing a check for the first time?

Back

Use the checkbook stub or register to keep a record of the date you write the check.

Front

What is the purpose of a savings account?

Back

To save money while earning interest on the deposited amount.

Front

What is the difference between a debit card and a credit card?

Back

A debit card withdraws money directly from your bank account, while a credit card allows you to borrow money up to a certain limit.

Front

What is a budget?

Back

A plan that outlines expected income and expenses over a specific period.

Front

What is compound interest?

Back

Interest calculated on the initial principal and also on the accumulated interest from previous periods.

Front

What is the importance of maintaining a good credit score?

Back

A good credit score can help you secure loans with lower interest rates and better terms.

Front

What is an emergency fund?

Back

A savings account set aside for unexpected expenses or financial emergencies.