What is the Difference Between Checking & Savings?

What should you not do with a check from your savings account?

• Save it for future investments

• Write a memo for withdrawal from savings

• Deposit it into your checking account

• Use it to pay rent directly

What incorrect method was humorously suggested for paying rent?

• Writing a check from savings with a memo

• Transferring money via an online app

• Paying in cash directly to the bank

• Using a credit card for payment

What is a primary feature of a checking account?

• Limited access to funds

• Restrictions on withdrawals

• Easy access and a debit card

• Earning interest over time

Why do checking accounts typically not earn interest?

• Only savings accounts earn interest

• Interest is only for long-term deposits

• Banks do not offer this feature

• High turnover rate of funds

What is the main purpose of a savings account?

• Paying bills directly

• Quick cash withdrawals

• Long-term wealth building

• Daily transactions

How do banks benefit from your savings account deposits?

• By charging high fees

• Using deposits to fund loans

• Offering no interest on deposits

• Limiting access to funds

What is not offered with a savings account?

• A debit card

• Interest accumulation

• A checkbook

• Online transfers

Why are there fees associated with checking accounts?

• To cover the cost of the debit card

• Because money can be withdrawn quickly

• Banks offer interest on these accounts

• To discourage frequent transactions

What should you ensure about your bank and account for security?

• FDIC insurance

• High interest rates

• Online banking options

• No withdrawal fees

What should you do if you need to pay your rent today?

• Write a check from your savings account

• Transfer funds to your checking account

• Withdraw cash from your savings account

• Ask the bank to directly pay from savings