Understanding Checking and Savings Accounts

Why is it not advisable to write a check from your savings account?

• Because it will not be processed by the bank.

• Because it will incur high fees.

• Because it is illegal to do so.

• Because savings accounts do not have checkbooks.

What is a primary feature of a checking account?

• It is used for long-term investments.

• It has no fees.

• It offers easy access to funds.

• It earns high interest.

Why do checking accounts not earn interest?

• Because they are not meant for saving money.

• Because banks do not invest the money in checking accounts.

• Because they are not insured by FDIC.

• Because they have high turnover rates.

What is the main purpose of a checking account?

• To earn interest on deposits.

• To provide funds for loans.

• To save money for long-term goals.

• To facilitate easy access to funds for daily transactions.

What is a key characteristic of a savings account?

• It offers a checkbook and debit card.

• It is designed for frequent transactions.

• It accrues interest over time.

• It has no limitations on withdrawals.

What is the main purpose of a savings account?

• To facilitate daily transactions.

• To provide easy access to funds.

• To avoid all banking fees.

• To save money and earn interest over time.

How do savings accounts contribute to the bank's business model?

• By offering high interest rates.

• By allowing frequent withdrawals.

• By charging high fees.

• By providing funds for loans.

Why do checking accounts have some fees that savings accounts do not?

• Because they are not insured by FDIC.

• Because they offer higher interest rates.

• Because they are used for long-term investments.

• Because money can be withdrawn quickly and unexpectedly.

What should you ensure about your bank and account?

• That they offer the highest interest rates.

• That they have no fees.

• That they provide a checkbook and debit card.

• That they are FDIC insured.

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

• Use your credit card.

• Withdraw cash from your savings account.

• Go to the bank and transfer money to your checking account.

• Write a check from your savings account.