EVERFI: Savings Accounts

What is the benefit of a savings account?

• A savings account helps you track your spending.

• A savings account creates investment opportunities.

• A savings account allows you to borrow money.

• A savings account earns interest.

Louie just opened his first savings account. What is one way that it can help him manage his money?

• It can give him access to a debit card.

• It can help him spend money more easily.

• It will keep his money safe.

• It can loan him money to pay back over time.

Lilly wants to save money for unexpected situations like emergencies. Which savings feature would benefit her the most?

• Earning the highest interest rate

• Easy access to her money

• Mobile banking alerts

• No banking fees

Why do financial institutions offer you higher interest rates for Certificates of Deposit (CDs)?

• They are paying you back for fees and interest that you have prepaid.

• The interest you earn is only borrows and must be repaid at the end of the term.

• You must keep your money in the account for a set amount of time.

• You'll be required to invest your interest funds with the same institution.

Keira is new to earning money and saving. She doesn't have a lot of money to open an account. Which savings option would be best for her?

• Savings Account

• Money Market Account (MMA)

• Certificate of Deposit (CD)

• Checking Account

Sawyer just got her learner's permit and can't wait to buy his first car. He received a large sum of money for his birthday and put it in an account to help it grow. He opened an account that required a large initial deposit, but that pays a high interest rate and allows him easy access to his money. What kind of account did Sawyer open?

• Savings Account

• Money Market Account (MMA)

• Certificate of Deposit (CD)

• Checking Account