Saving Options

A form of deposit account from a bank or credit union that typically earns interest that usually will earn higher interest than a checking account.

________________ is money the bank pays into your account over time based on the balance of your account.

______ ______ ____ is the amount of compound interest an account earns in a year. The calculation is based on the account’s interest rate and the number of times interest is paid during the year.

_______ _______ _______ a type of savings account that often offers higher interest rates in return for a higher minimum deposit, usually around $5,000 or more.

Which type of account generally has the lowest interest rate range?

• • A) Savings Account

• • B) High Yield Savings Account

• • C) Certificate of Deposit (CD)

• • D) Money Market Account

A high-yield savings account usually offers:

• • A) Guaranteed interest rates for a set period

• • B) Higher interest rates than a regular savings account

• • C) The ability to write checks and use a debit card

• • D) No restrictions on balance requirements

Which account type is the least liquid, meaning it is the hardest to withdraw from without penalties?

• • A) Savings Account

• • B) High Yield Savings Account

• • C) Certificate of Deposit (CD)

• • D) Money Market Account

Why might someone choose a certificate of deposit (CD) over a regular savings account?

• • A) To access funds quickly without penalties

• • B) To benefit from a higher, predictable interest rate over time

• • C) To avoid all monthly fees

• • D) To have unlimited withdrawals

FDIC insurance, up to $250,000, is available for which types of accounts?

• • A) Only savings accounts and CDs

• • B) Only high-yield savings and money market accounts

• • C) Only CDs and Money Market accounts

• • D) All types listed: Savings, High Yield Savings, CDs, and Money Market

What is a disadvantage of high-yield savings accounts compared to regular savings accounts?

• • A) Higher fees

• • B) Typically lower interest rates

• • C) Often requires online-only banking or specific balance requirements

• • D) Not insured by the FDIC