Navigating Checking and Savings Accounts

What is a checking account primarily used for?

• Earning interest

• Day-to-day purchases

• Long-term savings

• Storing physical cash

What happens when you use a debit card?

• You earn interest on the spent amount

• You pay later with interest

• You borrow money from the bank

• Money is taken immediately from your account

What is required to open a checking account at most financial institutions?

• A minimum balance

• A credit check

• A deposit

• Proof of employment

What is the main purpose of a savings account?

• Daily transactions

• Long-term money storage

• Immediate cash withdrawal

• Paying bills

How does a savings account differ from a checking account in terms of transactions?

• Limited number of transactions

• No transactions allowed

• Unlimited transactions without fees

• Only online transactions allowed

What benefit does a savings account offer over time?

• Charges for account maintenance

• Decreases the total balance

• Offers loans

• Pays interest on the balance

What can you do if you link your checking and savings accounts?

• Use a debit card for savings

• Transfer money between them

• Increase the interest rate

• Avoid paying taxes

What is the goal of linking checking and savings accounts according to the video?

• To consolidate debts

• To increase spending limits

• To facilitate easy transfers

• To monitor spending habits

Why is it important to understand both checking and savings accounts?

• To avoid taxes

• To spend more money

• To open a business

• To become financially literate

What can you practice on the LearnBrite.org website related to banking?

• Investing in stocks

• Writing a check

• Applying for a loan

• Creating a budget