Banking & Saving

Sam 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?

• Regular savings account
• Money Market account
• Checking account
• Certificate of Deposit

What is an overdraft fee?

• A fee charged by a bank when it allows transactions to go through that would otherwise have overdrawn your account.
• A fee charged when you use an ATM that is from a bank other than your own.
• A fee charged by banks when an account lacks the funds needed to cover a transaction, and the bank doesn’t allow the transaction to go through.
• A fee charged when you transfer too many funds between accounts.

Which of the following is NOT a good place to save for the future?

• 401K
• Checking Account
• 529
• Certificate of Deposit (CD)

Which of the following will has the highest average fee?

• NSF (Non Sufficient Funds) Fee
• Overdraft Fee
• Out-of-Network ATM fee?
• A Monthly Maintenance Fee

Pauly is saving up for college. He has $10,000 saved up from mowing lawns and selling Fireball down at the dirt track. He hopes to save about 200 a month moving forward. He is going to college in five years. Which of these account types would work best for him?

• Regular savings account
• Money Market account
• Checking account
• Certificate of Deposit

What is simple interest?

• Interest calculated on the initial principal only
• Interest calculated on the initial principal and any previously earned interest
• Interest that varies based on market conditions
• Interest calculated using complex mathematical formulas

If you invest $100.00 at a 10% annual interest rate for 3 years, how much simple interest will you earn?

• $130
• $150
• $50
• $30

What type of interest will earn you more money on your savings account?

• Compound
• Simple

What is NOT a service that a bank provides?

• Easy access—deposit and withdraw money conveniently
• Online management—manage your accounts with your bank’s website or app
• Simple transfers—link your account to a payment app and it’s easy to pay back your friend for those concert tickets
• Access to loans—apply for a credit card or mortgage with your bank
• Purchasing stocks and other investments such as cryptocurrency

Which are TWO ADVANTAGES of having an account at a local community bank versus a national bank?

• Community banks are typically larger and more well-known than national banks.
• Community banks typically have LOWER fees and charges when compared to a national bank.
• Community banks typically have HIGHER fees and charges when compared to a national bank.
• Community banks typically give back and support the local community.