Checking and savings accounts

What is an account balance?

• The amount of money you have in an account.

• The fees you must pay to have an account.

Wes wants to accumulate enough money to buy himself a new car. He should probably open a:

• checking account

• savings account

What is the difference between a credit card and a debit card?

• A debit card can only be used at an ATM. Credit cards can only be used in stores or on-line.

• A debit card takes money directly from your banking account; while using a credit card is a form of borrowing.

All transactions should be recorded in your bank register. True or False

• True

• False

A checking account . . . . (choose 3)

• allows you to withdraw money, pay a bill, or make purchases easily.

• has a limit on how many times you can withdraw money.

• allows quick access to money for everyday expenses.

• allows you easy access to your money through a debit card, atm, or checks.

• earns interest on the money you deposit into the account.

A savings account . . . . (choose 2)

• allows you to withdraw money, pay a bill, or make purchases easily.

• has a limit on how many times you can withdraw money.

• allows quick access to money for everyday expenses.

• allows you easy access to your money through a debit card, atm, or checks.

• earns interest on the money you deposit into the account.

When you make a deposit into your account you . . . .

• add the amount of the deposit to your account balance.

• subtract the amount of the deposit from your account balance.

• do nothing to your account balance.

When you make a withdraral (or write a check) from your account you . . . .

• add the amount of the withdrawal to your account balance.

• subtract the amount of the withdrawal from your account balance.

• do nothing to your account balance.

A check is a form of . . . . .

• deposit to a checking account.

• withdrawal from a checking account.

When Mary goes to the grocery store to do her shopping for the week she will use money that is in her ____ to make her purchase.

• checking account

• savings account