Checking & Savings Accounts

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 is one of the benefits of having both checking and savings accounts at the same bank?

• Higher interest rates

• Near-instant transfers between accounts

• No federal insurance

• Requirement of a minimum balance

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

Which fee might be charged if you close a bank account soon after opening it?

• Overdraft fee

• Insufficient fund fee

• Early account closing fee

• Wire transfer fee