Current and Savings Accounts

The video tutorial introduces the concept of saving money, discussing the importance of putting money in a safe place. It explains the differences between savings and current accounts, highlighting the benefits of earning interest with savings accounts. The tutorial also covers credit cards, detailing how they function as a form of borrowing with interest and credit limits. The video concludes with a recap of the key points about bank accounts and their features.

What is the main purpose of a savings account?

• To pay bills online

• To earn interest on saved money

• To get an ATM card

• To allow frequent withdrawals

Which type of account is typically used for daily transactions?

• Savings account

• Fixed deposit account

• Current account

• Investment account

What is interest in the context of a savings account?

• A fee for using an ATM

• A charge for account maintenance

• Money earned from the bank for saving

• A penalty for late payments

How does a credit card differ from a debit card?

• Debit cards allow borrowing money

• Credit cards involve borrowing money

• Credit cards require a PIN for transactions

• Debit cards have higher interest rates

What happens if you don't pay off your credit card balance by the end of the month?

• You receive a discount

• Your credit limit increases

• You are charged an interest fee

• You earn more interest

What is a credit limit?

• The maximum amount you can borrow on a credit card

• The minimum payment required each month

• The fee for late payments

• The interest rate charged on a credit card

Which of the following is a feature of a current account?

• ATM card access

• Fixed deposit terms

• Limited withdrawals

• Higher interest rates