Ch1 Sec3

Question 1

Savings accounts

Answer 1

Put money aside for future use

Interest rates 3-5%

Question 2

Savings account fees

Answer 2

Monthly maintenance, minimum balance fees

Question 3

Direct deposit

Answer 3

Employer payroll deposit into employees account

Question 4

Routing number

Answer 4

Code to direct your pay stub unto the correct account

Question 5

Checking account

Answer 5

Keep money in an account and use debit card without using cash

Question 6

Checking account fees

Answer 6

Balance falls below a minimum amount

Question 7

Bouncing a check

Answer 7

Written check exceeds checking account balance, 25-50 fine

Question 8

Certificate of deposit

Answer 8

Money is locked in an account for a fixed period of time

Question 9

FDIC- federal deposit insurance corporation

Answer 9

Federal govt guarantees bank deposits

Question 10

Credit union

Answer 10

Non profit organization, don’t pay federal taxes

Question 11

Credit unions advantages

Answer 11

Better interest rates on savings and loans

Free checking, lower fees

Question 12

Credit union disadvantages

Answer 12

Fewer rewards for accounts

Limited ATMs= more service fees for withdrawals

Question 13

ATM

Answer 13

110 average withdrawal
7.4 withdrawals a month
Spend 25% more than non ATM users