Unit 2 L1 Banking

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What is a savings account?

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A savings account is a bank account that earns interest on the money deposited, allowing individuals to save money while earning a small return.

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What is a checking account?

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A checking account is a bank or credit union account that allows easy (and usually unlimited) access to your funds via check, ATM, or debit card.

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What is mobile banking?

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Mobile banking refers to the use of a mobile device to access banking services, such as checking account balances, transferring funds, and paying bills.

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What is a credit union?

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A credit union is a member-owned financial cooperative that is created and operated by its members, with profits shared among the owners.

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What is an online savings account?

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An online savings account is a type of savings account managed online without a physical branch, typically offering higher interest rates and lower fees.

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What are the benefits of using a savings account?

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Benefits include earning interest on deposits, easy access to funds, and a safe place to store money.

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What features are commonly found in mobile banking apps?

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Common features include account balance checking, fund transfers, bill payments, transaction history, ATM/branch locator, and mobile check deposit.

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What is the purpose of a debit card?

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A debit card allows you to make purchases by deducting money directly from your checking account.

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What is interest?

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Interest is the cost of borrowing money or the return on investment earned on savings, usually expressed as a percentage.

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What is the difference between a bank and a credit union?

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Banks are for-profit institutions that offer financial services, while credit unions are non-profit cooperatives owned by their members.