Bank Accounts

What are the two main types of bank accounts?

• Savings account and checking account

• Investment account and retirement account

• Cash account and loan account

• Credit account and debit account

Explain the difference between a savings account and a checking account.

• Savings accounts are for saving money and checking account is to pay bills only.

• Savings accounts are for saving money and checking accounts are for everyday use.

• Savings accounts are for saving money only, while checking accounts are for spending and saving money.

True or False: A checking account is for daily access.

• False

• True

True or False: A savings account has limited access.

• True

• False

This account allows you to pay for food, monthly bills, other purchases, and regular monitoring to prevent overdrafts.

• Bank Accounts

• Savings Account

• Checking Account

This account let you build savings for emergencies and long-term goals like education, vacation, or a car.

• Checking Account

• Savings Account

• Bank Accounts

What documents are typically required to open a bank account?

• Valid identification such as a driver's license or passport, proof of address, social security number, and initial deposit.

• Credit card and utility bill

• Social security card and birth certificate

• Library card and student ID

Why is it important to compare different banks before opening an account?

• Because all banks offer the same interest rates and fees

• To find the best interest rates, fees, and services that meet your financial needs.

• To limit your options and make a quick decision

• To avoid understanding the terms and conditions of different banks

True or False: A monthly statement is a list of transactions for a checking and savings account?

• True

• False

What is a debit card?

• Debit cards allow you to borrow money from the bank, while credit cards deduct money directly from your account

• Debit card is tied into your checking account and you use it to deduct money directly from your account through purchases

• There is no difference between a debit card and a credit card

• Debit cards are only used for online transactions, while credit cards are only used for in-store transactions