Savings Account Flashcard

Front

What is a savings account designed for?

Back

Accumulating money for future use

Front

What does the Truth in Savings Act require from financial institutions?

Back

To provide clear information about costs and terms of interest-earning accounts

Front

What does the annual percentage yield (APY) represent?

Back

The rate of yearly earnings from an account, including compound interest

Front

Which of the following is NOT required information under the Truth in Savings Act? Minimum amount required to open the account, Description of any fees, conditions, and penalties, Interest rate

Back

The bank's annual profit

Front

What type of savings account earns interest and allows for regular deposits and withdrawals?

Back

Interest bearing savings account

Front

What is the maximum amount insured by the FDIC or NCUA for money market accounts?

Back

$250,000

Front

Which account type is less liquid due to withdrawal restrictions?

Back

Money market account

Front

What is the APY for a high-yield savings account as shown in the diagram?

Back

2.00%

Front

What is a disadvantage of money market accounts mentioned in the text? Options: High liquidity, No interest, Limited check transactions, Unlimited withdrawals

Back

Limited check transactions

Front

What is a certificate of deposit (CD)?

Back

A savings account with a fixed term.