NGPF Savings Review

Front

What is the main advantage of a traditional savings account?

Back

Ease of accessibility and interest earnings.

Front

What is a certificate of deposit (CD)?

Back

A timed deposit. You agree with the bank to keep the money in their account for a set period of time. The bank pays you interest in return.

Front

What is the main advantage of a certificate of deposit (CD)?

Back

Higher interest rates than regular savings accounts.

Front

What is the main disadvantage of a certificate of deposit (CD)?

Back

Limited accessibility due to fixed terms and penalties for early withdrawal.

Front

What is a money market deposit account (MMA)?

Back

A type of checking/savings account that requires a minimum balance and offers limited check-writing privileges.

Front

Why might someone choose to open an online savings account rather than a savings account at a traditional bank?

Back

Online savings accounts typically pay higher interest rates on deposits.

Front

What is a major downside of keeping all your money in a checking account?

Back

Tendency to overspend

Front

What is the difference between a traditional savings account and an online savings account?

Back

Traditional savings accounts are managed in-person at a bank, whereas online savings accounts are managed digitally, often offering better interest rates.

Front

Why is it better to save as soon as possible instead of waiting until later?

Back

More interest earning potential. It gives your money more time to grow.

Front

A fee paid to you for keeping your money in an account OR a fee charged to you for a loan or credit card.

Back

interest