Financial Preparation for Entrepreneurial Venture Flashcards
- Used for safekeeping personal cash and earn (minimal) interest
- Instrument for banks to acquire business capital and/or for further investment
Bank accounts
4 common types of bank accounts
- savings account
- checking or current account
- time deposit
- hybrid account (combination of the three) aka premium accounts
Bank accounts
________ are eligible for personal loans, car loans, housing loans, mortgage, etc.
Premium depositors
Other term for bank accounts
Certificates of deposits
What does mataining balance mean in deposits
What should be left in your savings
What will happen if the money you have in your account is below the minimum deposit/maintaining balance?
You will be penalized
Annual interest means what
You have to amintain an account for a year before getting any benefits
does checking account have any interest?
No
In ________, interest depends on time and holding period
time deposit
What is a post-dated cheque?
Cheque wherein the date is written later
What is the expiration of a cheque?
It’s only good for 6 months
Money in cheque should be _____________
less than the money in in the checking account
What happens if the ammount of money in the cheque is supposedly more than 300K?
Estafa (criminal offense)
According to our law, how much are the tax for the different types of bank accounts?
20%
In this type of bank account, you cannot use the money you deposited for the chosen holding period
Time deposit
- All-in-one savings, current, and time deposit. (Commonly offered by international banks. Seldom, by local banks.)
Bank accounts (money market accounts)
Minimum deposit amount (or ADB)
P100,000
