WorksheetsChecking & Savings Accounts
Total questions: 20
Worksheet time: 10mins
What is the main difference between a checking account and a savings account?
Savings accounts are generally used for spending money.
Checking accounts have higher interest rates.
Checking accounts are best for spending money.
There is no difference between checking and savings accounts.
What are savings accounts best for?
Spending money frequently.
Stashing cash.
Online shopping.
Direct deposit of paychecks.
What is a characteristic of savings accounts?
They are used for regular transactions like checking accounts
They typically have a monthly limit on withdrawals without a fee
They have no way to earn interest
They are primarily used for everyday spending
What should you look for when choosing a checking account?
An account that charges high maintenance fees
An account that offers no access to ATM networks
An account that doesn't charge a maintenance fee or has an easy way to waive it
An account that limits spending requirements
How do checking account interest rates generally compare to savings account interest rates?
They are generally higher than savings account rates
They are the same as savings account rates
They are generally lower than top savings account rates
They cannot earn interest at all
What should the best savings accounts offer?
High interest rates and monthly fees
Low interest rates and no online bank transfers
Strong interest rates, no monthly fees, and easy online bank transfers
Monthly service charges and limited withdrawals
Up to what amount are deposit accounts federally insured per depositor at most banks and credit unions?
$100,000
$250,000
$500,000
$1,000,000
What can help consumers avoid paying bank fees?
Keeping a minimum balance in the account
Being aware of the fees ahead of time and shopping around for options with fewer fees
Only using ATMs of the bank where the account is held
Closing the account and keeping cash at home
A paycheck was deposited
Check #164 was written
Nothing
The balance went up
The date
The amount of the check
Who the check is going to
Your signature
Do checking accounts come with any fees?
No, they are completely fee-free
Yes, they may have overdraft, ATM, and monthly maintenance fees
No, but they have high minimum balance requirements
Yes, but only for senior citizens
Should you have both checking and savings accounts?
No, only one account is necessary
Yes, but only if you have a high income
Yes, because they serve different purposes
No, it's better to have multiple checking accounts
When you deposit a check, you need to let the bank know that you have personally approved the transaction by __________ the check:
Folding
Typing
Recording
Endorsing
A checking account allows you to pay for things in other ways than using cash - like wiring checks or using a credit card
True
False
A simple way to determine how long an investment will take to double given a fixed annual rate of interest.
Rule of 72
compound interest
interest rate
savings
Interest calculated on the initial principal, which also includes all of the accumulated interest of previous periods of a deposit or loan.
savings account
payday loan
compound interest
title loan
You can never save too much or start too early.
true
false
Why should you save first and not last?
It keeps you from thinking you have money to spend when you do not.
Savings should be done last--not first.
Savings accounts have low interest rates.
Investing is more important than saving.
The interest earned on the initial principal only.
compound interest
interest rate
simple interest
principal
