Banking Review

Juan saved $1,000 from his summer job cleaning pools. Which of these account types would work best for him if he doesn't need access to the money for a number of years AND wants to earn the highest interest rate?

• Savings account

• Checking account

• Certificate of Deposit

Which of the following is an effective strategy for personal saving?

• Wait until the end of the month and save whatever is left in your checking account

• Save a certain percentage of each paycheck and deposit it directly into a savings account

• Take out a loan so you can save before you receive your paycheck

The following statements about bank accounts are true (check all that apply):

• If the bank account is FDIC-insured, your money is safe even if the bank fails

• Many banks pay interest on the money you deposit into your savings account

• Money in a checking account is usually easy to access via ATM, debit card or check

You are developing a savings plan and using short-, medium-, and long-term goals to motivate you. Which represents possible goals from short-term to long-term? Save for…

• Retirement, a house down payment, a new car

• A new cell phone, a new car, a house down payment

• A new car, a new cell phone, retirement

Fill in the blanks with the correct responses.  If you follow the 50-30-20 rule of budgeting, you'll be putting 50% of your monthly income toward ____, 30% of your monthly income toward ____, and 20% of your monthly income toward ____.

• Needs, wants, savings

• Savings, needs, wants

• Wants, needs, savings

Which of these lists ranks the savings options from highest expected interest rate to lowest expected interest rate?

• Online savings account, Certificate of Deposit, Savings account at traditional bank

• Savings account at traditional bank, Online savings account, Certificate of Deposit

• Certificate of Deposit, Online savings account, Savings account at traditional bank

Which statement best describes a savings account?

• This account offers a convenient way to pay bills and access cash from an ATM

• This account pays you interest on money you have put away for later to help your money grow

• This account typically allows an unlimited number of transactions per month

You overhear your Aunt Tina tell your mom that she, her husband, and their kids are "living paycheck to paycheck."  What does Aunt Tina mean by that?

• Aunt Tina gets a paycheck one month, and her husband gets a paycheck the next month; they alternate pay periods

• Aunt Tina and her family don't have any money saved, and their paychecks are just barely covering monthly expenses

• Aunt Tina only receives paper paychecks instead of direct deposit

You are at the checkout counter at the local supermarket and use your debit card to pay for your groceries. Where does the money for this purchase come from?

• Your credit card company covers the cost

• It is deducted directly from your checking account

• It is deducted directly from your savings account

Jocelyn gets a text alert from the bank that her account balance has dropped below $100 after a series of $20 ATM withdrawals. She has not used her ATM in over a week and wonders what she should do. What would you recommend?

• Wait until her monthly statement arrives so she can check to see if those withdrawals are still there

• Wait a week as it is fairly common for the bank to catch mistakes like this

• Contact her bank immediately as it appears that her account may have been hacked