2.2 EXIT TICKET- Savings Accounts Exit Ticket

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1. Which of the following is typically a feature of a savings account but not a checking account?

• Ability to withdraw money from an ATM
• FDIC insured up to $250,000
• Your money earns interest
• Ease of making payments using a debit card

2. Tyreke has $5,000 to put into an account that earns compound interest. Which of the following is the BEST advice you can offer so that he can maximize interest?

• It’s ok to open an account with a low interest rates as long as you deposit your money early
• Deposit your money as early as possible in an account with the highest interest rate possible
• Wait for interest rates to rise above 5%, otherwise compounding doesn’t have any effect
• Compound interest will not have any effect at such a low dollar amount. Find different opportunities to earn interest on your savings.

3. Which of the following is TRUE when comparing savings accounts and certificates of deposit?

• Savings accounts are FDIC insured while certificates of deposit are not
• Savings accounts allow you to access your money at all times while certificates of deposit require your money to be left alone for a set period of time
• Savings accounts typically have a higher interest rate than certificates of deposit
• Both savings accounts and certificates of deposit allow you to deposit money at any time