Savings

What does compound interest do?

• Interest is added once at the end

• You earn interest on both the money you deposit and the interest it's already earned

• Interest is earned only on the original deposit

• You have to pay interest on the money you save

What's the best thing about a term deposit?

• You can get your money anytime

• Your savings are safe, and you earn guaranteed interest

• It doesn't need a minimum deposit

• You can use it as a credit card

What happens if you withdraw your money early from a term deposit?

• You get a bonus

• You may lose interest or face penalties

• You get extra interest for being early

• Nothing happens, its just like a regular savings account

What's the difference between simple and compound interest?

• Simple interest is better for long-term savings

• Simple interest changes over time, compound doesn't

• Compound interest earns interest on both the deposit and interest already earned

• Compound interest doesn't exist

What is the most important factor when comparing term deposits?

• How long you can access your money

• The size of the bank

• The colour of the banks logo

• Interest rates, fees and how long you lock your money in

What does a savings account do?

• Lets you save money and earn interest

• Lets you borrow money

• Charges fees every month

• It's a type of investment in the stock market

What is an advantage of compound interest

• You can access your interest anytime

• It makes your money grow faster because you earn more interest on interest

• It's only for people who save over 5 years

• It's always gives you a higher rate than simple interest

If you want to invest your money for a longer time with a fixed return, which is a good option?

• A savings account

• A credit card

• A term deposit

• A personal loan

What is a disadvantage of a term deposit

• The interest rate is variable and can change anytime

• You can't withdraw your money until the term is over without facing penalties

• You can withdraw money at any time

• The bank gives you a reward for locking in your money

How do you calculate simple interest?

• Simple Interest = Principal x Interest Rate x Time

• Simple Interest = Principal + Interest Rate + Time

• Simple Interest = Principal ÷ Interest Rate ÷ Time

• Simple Interest = Principal x (Interest Rate + Time)