ARCHIVED: Analyzing Types of Bank Accounts CFA 1: 23-24

Scenario: You have earned $1000 from your summer job. Now, you're ready to open a bank account but you aren't sure which account type best fits your needs. You DO NOT need to access your money for a year AND you want to earn the HIGHEST interest rate.
Which account below best fits your needs?

• Regular Savings Account

• Money Market Account

• Checking Account

• Certificate of Deposit

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Types of account

50/30/20 Rule:
Label the correct sections of the graph.

c

b

a

Savings

Needs

Wants

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Savings Strategies

You are at the store and you use your debit card to make a purchase. Where does the money come from to make that purchase?

• Your Credit Card company

• You personal bank account

• A cash advance from your credit card

• Your personal savings account

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Debit/Deposit

John has a significant amount of money that he wants to deposit in a bank. He is concerned about the safety of his money. How can FDIC Insurance help him?

• John can choose to opt in for FDIC Insurance coverage to keep his deposits safe

• FDIC Insurance is something that bank branches buy to protect them from fraud and scams

• FDIC Insurance is required if John wants to do online banking

• FDIC Insurance protects all of John's deposits up to 250,000 guaranteeing his money is still available if the bank goes out of business.

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General Banking Knowledge

You receive an alert on your phone that your bank account balance has dropped below $100 due to a series of ATM cash withdrawals. You know it wasn't you because you haven't used the ATM in weeks. What should you do? Select the best option below.

• Wait until you receive your monthly statement to check those transactions.

• Wait a week. Maybe the bank made a mistake and will fix it soon.

• Do nothing. You still have your ATM card in your wallet, so it's probably just a glitch.

• Contact the bank immediately as it appears your account has been hacked.

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Consumer Skills

What does "Overdraft Protection" do for your bank account?

• Overdraft Protection stops transactions from going through if you don't have money in the account.

• Overdraft Protection pays for any transaction when you don't have money, for free.

• Overdraft Protection charges you a fee of $35 per transaction that overdraws your account, but covers your transaction.

• Overdraft Protection closes your account if you overdraw your account.

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Consumer Skills