Places to put your money review

What is a 529 account used for?

• Retirement savings

• Education expenses like tuition, housing, meal plan

• Buying a house

• Starting a business

To avoid paying a monthly bank account fee, you can use a student account which links to a ________ account.

• friend's

• parent's

• business

• savings

Which of the following is a characteristic of a high-yield savings account (HYSA)?

• Lower interest rates

• Interest rates that change depending on the Federal Reserve interest rate

• Available at physical bank branches

• No FDIC insurance coverage

Which grows faster? Simple interest or compound interest?

• Simple interest

• Compound interest

What is a debit card?

• A card that links to your checking account and uses your money to make purchases

• A card that allows you to borrow money from the bank

• A card that only links to your savings account

• A card that is used only for online shopping.

A 529 account is primarily used for ______.

• Buying a car

• Education expenses like tuition, housing, meal plan

• Vacation

• Medical expenses

Which of the following is a way to avoid paying a monthly bank account fee?

• Maintain a minimum daily balance

• Use a credit card

• Withdraw cash frequently

• Close the account.

Which of the following accounts have FDIC insurance? (Select all that apply)

• Savings account

• Government bonds

• HYSA

• CD (certificate of deposit)

• Corporate bonds

What is the maximum amount guaranteed by the government under FDIC insurance if your bank fails (disregarding HYSA's)?

• $100,000

• $250,000

• $500,000

• $1,000,000

What is one key feature of a Certificate of Deposit (CD) that differentiates it from a checking or savings account?

• No maturity date

• Higher interest rate

• Unlimited deposits

• No penalties for early withdrawal