Unit 4: Banking Flashcards
Overdrawn is when you have a ________ balance in your account
negative
The bank uses _______ _________ when you don’t have enough money in your account. This results in a $__ fee _________.
overdraft protection, 35, every transaction
T/F Once you are signed up for overdraft protection, you can’t opt out
F
You can avoid overdraft fees by enabling ______ or _________
alerts, opting out
3 mobile alerts that can help avoid fees are ______, _________, and ________
Unusual account activity, large purchase, low balance
Apple cash used for _________ while apple pay is used for _________.
person to person, transactions
When you lose a debit card, you are liable for up to __ 1-2 days after, _____ 30-60 days after, and ___ 61+ after.
50, 500, all
The Fair Credit Billing act ensures that the max liability for credit cards is ____.
50
What are cons of credit cards?
Can affect credit score, promotes overspending, and huge interest rates if not paid on time
What are the pros of a credit card?
Can pay after a grace period, can spend higher than currently have, rewards, travel insurance, fraud protection, can pay back over time, no need for pin number
What are the cons of debit cards?
Get declined if insufficient funds, overdraft fees, maintenance fees, hard to purchase large items, need a pin number, no rewards,
What are pros of debit cards?
Makes ATM withdrawals, stay out of debt, avoid credit scrutiny, simplify finances
You can take money out of your account by _______, _______, and __________.
writing checks, ATM withdrawals, automatic payments to utilities
You can put money into your checking account by _________, _________, and ________.
ATM deposits, cashing checks, direct deposit paycheck
It is important to have a free checking account to avoid _______.
fees
What are 4 advantages of a checkings account?
convenient, safe, quick, and helps track finances
Your money is FDIC insured up to ______, which means that ____________.
250,000; you will get refunded up to 250,000 if the bank goes under
A bank statement helps you to see ______ and ________ each month.
deposits, withdrawals
Fees on a bank statement could be from _____________, ___________, or _______.
ATM withdrawals out-of-network, overdraft fees, maintenance fees
You should check your bank statement every ______.
week
You receive bank statements every _____.
month
A person who is unbanked spends more ______ and ______. They have no way to ______ or recieve _________.
time, gas; build a credit history, direct deposits
List 4 bills for regular online bill pay
INternet, cell phone, electricity, and apartment
A direct deposit is a way to _______ put money in your checking account.
electronically
The four benefits of direct deposit are _____, ________, __________, and ________.
convenience, quick, increased savings, safety
P2P apps like _______, _______, _______ are used to __________
Venmo, PayPal, Cash app, between people
You can lose money using P2P if you _______ or _______
send it to wrong person, pin leaked
Pay to the order of ________
person or company receiving check (payee)
For __________
Intended purpose of check
Add a security line ______ the numerical and word payment.
after
The word “and” only goes _______ cents
before
List date as __________ on a check
October 11, 2021
Two spots where you can adjust a check without voiding it are _________ and __________.
Date with initial, name of recipient (payee) with initial or sign both versions on back
Two spots where you can adjust a check without voiding it are _________ and __________.
Date with initial, name of recipient (payee) with initial or sign both versions on back
A blank endorsement is when the ________ signs the back of the check
Payee (recipient)
A restrictive endorsement is when the ______ and ________ sign the back of the check, allowing ________.
payee (recipient) and payer, only the payee to cash the check with “for deposit only”
A 3rd party check allows you to _________.
Pass the check off to someone else’s account by signing back with “pay to order of”
A _______ allows you to put cash or check into your checking account.
deposit slip
A _______ helps you take cash out of your account
withdrawal slip
For __________, you must leave your deposit in the bank for the time specified.
Certificates of deposit
You should save ____ percent of your paycheck.
20
Investing is for ______ term savings, while savings is for _______________.
long, immediate purchases
You should keep your emergency fund in your ______ to make sure that ______
savings account, don’t spend it on day to day items
50-20-30 means 50% ______, 20% _______, and 30% _________
Mandatory expenses, savings and debt, wants
Paying yourself first means
that you take total monthly income, subtracting expenses and set some money aside for savings right after you get your paycheck.
Savings accounts (do/do not) allow you to access money fro withdrawals on a daily basis
do not
A _______ account earns interest
savings
When looking at rates on savings accounts, you want your interest rate to be ______
higher
You should prioritize _______ because it grows quicker the sooner you start
investing
It takes __ to __ days to process a reoccuring bill request
4 to 6.
