Understanding Banking Basics

The video explains the importance of checking and savings accounts, highlighting their differences and benefits. Checking accounts are for daily transactions, while savings accounts are for storing money with limited withdrawals. The video also covers the advantages of using these accounts, such as direct deposit and debit cards, and warns about potential fees. It provides steps for setting up accounts and emphasizes monitoring them to avoid overdraft fees and fraud.

What percentage of U.S. households use checking or savings accounts?

• 90%

• 100%

• 85%

• 95%

Which type of account is typically used for everyday expenses?

• Investment Account

• Savings Account

• Checking Account

• Retirement Account

What is a key feature of a savings account?

• Limited withdrawals per month

• No interest

• High interest rates

• Unlimited withdrawals

How can you transfer money between checking and savings accounts?

• Calling customer service

• Writing a check

• Using a few clicks on a mouse or swipes on an app

• By visiting the bank

What happens if you use a debit card and there are insufficient funds in your account?

• The transaction is declined

• The transaction is put on hold

• You are charged a non-sufficient funds fee

• The bank covers the payment without any fee

What is a benefit of mobile check deposit?

• Higher interest rates

• Unlimited withdrawals

• No fees

• No need to visit the bank

What is a common way to avoid monthly maintenance fees?

• Using a credit card

• Writing checks

• Using only cash

• Maintaining a minimum balance

Which fee can be avoided by understanding the rules and being responsible with transactions?

• Account and activity fee

• All of the above

• ATM fee

• Overdraft fee

What information is typically required to set up a new bank account?

• All of the above

• Name and email

• Social security number and government-issued ID

• Phone number and address

What should you do if you notice any unrecognized activity in your account?

• Ignore it

• Contact your bank immediately

• Wait for a month

• Withdraw all your money