Personal Finance Accounts

What is a checking account?

• A checking account is a type of bank account that only allows you to withdraw money.

• A checking account is a type of bank account that is used for long-term savings.

• A checking account is a type of bank account that does not require any identification to open.

• A checking account is a type of bank account that allows you to deposit and withdraw money, make payments, and manage your finances.

What are the benefits of having a checking account?

• Higher interest rates, limited access to funds, no online banking, no opportunity to build a banking relationship.

• Easy access to funds, ability to make payments and transfers, convenience of online banking, opportunity to build a banking relationship

• Difficulty making payments and transfers, inconvenient access to funds, lack of online banking, no chance to build a banking relationship.

• Limited payment options, inconvenient access to funds, no online banking, no opportunity to build a banking relationship.

What is the purpose of a savings account?

• To spend money and earn interest.

• To invest money and earn interest.

• To save money and earn interest.

• To borrow money and earn interest.

What are the advantages of having a savings account?

• No interest, limited security, and no convenience.

• Earning interest, safe storage, and easy access to funds.

• No interest, limited security, and difficult access.

• Higher risk, limited access, and no interest.

What is the difference between a checking account and a savings account?

• The main difference between a checking account and a savings account is that a checking account is used for everyday transactions while a savings account is for saving money over a longer period of time.

• A checking account allows unlimited withdrawals while a savings account has a limit on withdrawals.

• A checking account has a higher minimum balance requirement than a savings account.

• A checking account earns interest while a savings account does not.

What are some common features of checking accounts?

• Ability to write checks, make electronic transfers, access to a debit card, and the option to receive direct deposits.

• Ability to withdraw cash from ATMs, earn interest on the balance, and access to online banking services.

What are some common features of savings accounts?

• High fees, easy access to funds, no interest earnings, and no insurance.

• No fees, limited access to funds, no interest earnings, and no insurance.

• High fees, limited access to funds, no interest earnings, and no insurance.

• Interest earnings, low or no fees, easy access to funds, and FDIC insurance.

What is the importance of maintaining a minimum balance in a checking account?

• To avoid fees and penalties.

• To earn interest on the balance.

• To access additional banking services.

• To increase credit score.

What are some strategies for saving money in a savings account?

• Setting a budget, automating savings, cutting unnecessary expenses, and comparing interest rates.

• Investing in high-risk stocks, spending more on luxury items, and ignoring interest rates.

What are some potential risks associated with checking and savings accounts?

• Insufficient funds, account freezing, interest rate changes

• Fraud, identity theft, unauthorized access, overdrawing, bank failures, economic downturns