The Ultimate Savings Account Quiz

Estimated Completion Time
2 min
Why is a savings account a safe place to stash your money?
It's insured.
It's safe from fire or theft.
both answers
Depositing your money in a savings account will keep your cash safe from theft or fire. Also, banks and credit unions guarantee your savings account for up to specified balances.

Advertisement

What does the bank pay you?
a dividend
interest
The bank will pay you interest. For little or no charge, the bank will hold your money and pay you interest on the balance.
wages

Advertisement

When does the bank pay interest?
daily
monthly
Usually the interest is paid every month.
yearly

Advertisement

What is compounded daily interest?
interest on interest
interest on principal
interest on principal and interest
With compounded daily interest, interest is earned every day. The daily earned interest is added to the principal and this becomes the new principal balance. Compounded daily interest pays interest on the principal and interest on the interest.

Advertisement

What do banks and credit unions do with your account deposits?
pay wages
fund loans
They use the savings account deposit to bankroll loans to others. Don't worry, your money is available for you anytime.
donate to charity

Advertisement

What is a money market savings account?
type of saving account
A money market is a type of savings account and may pay more interest than a regular savings account. Money markets may require a more substantial minimum balance and have other stipulations.
type of checking account
Certificate of Deposit

Advertisement

Do money markets have any fees?
service charges
Account costs and fees may vary, so shop around for an account with charges suitable for you.
interest charges
late fees

Advertisement

How can you track your deposits, withdrawal fees and interest payments?
monthly statement
online
both answers
A monthly savings account statement will be provided. Most accounts have Internet access and then you may monitor you account as often as you wish.

Advertisement

What is account reconciliation?
matching your records with the bank records
Matching your records with the bank statement is called reconciliation. Bank errors are very rare so if your account does not reconcile you should check your accounting.
balancing the account
totaling the interest

Advertisement

How do you receive the monthly bank statement?
regular mail
Internet
both answers
Statements are issued by regular mail. If you have selected Internet access, the statement will be available online.

Advertisement

What if you don't want a written statement mailed to your address?
You must receive your bank statement by regular mail.
You may stop paper statements.
You may elect to stop paper statements and receive your statements online.
You may pick the statement up at your local branch.

Advertisement

What is a passbook savings account?
low or no minimum balance
low interest rate
both answers
A passbook savings account is a basic bank savings account. A passbook account usually has a low or no minimum balance and pays a low interest rate.

Advertisement

What type of business is a credit union?
cooperative organization
A credit union is a cooperative organization formed by and for specific groups of people.
business organization
charitable organization

Advertisement

What type of business is a bank?
for-profit
A bank is a commercial business and the goal of a bank is to make a profit from bank operations.
non-profit
charity

Advertisement

Why would you rather get a loan from a credit union than a bank?
lower interest rate
A credit union may have a lower interest rate loan available.
high interest rate
lower fees

Advertisement

How does a bank make money from savings accounts?
bank fees
loaning money at higher interest rates
The bank pays you money on your account balance and then loans the money out at a higher interest rate.
selling office supplies

Advertisement

How do account interest rates differ at banks and credit unions?
lower
Usually the credit union's interest rates are lower than the banks, you should shop around for the best rate.
same
higher

Advertisement

What kind of groups have credit unions?
state employees
Many state employees have credit unions are available.
bank employees
stock brokers

Advertisement

For savings accounts, are the bank fees expensive?
low
The bank fees are usually very low ,but you should know what fees will be charged before you open an account.
high
very high

Advertisement

When you open a savings account, how much money do you need for the initial deposit?
low
no minimum
both answers
Usually the minimum deposit is low or none at all.

Advertisement

You Got:
/20
iStockphoto.com/Ivan Bajic
Featured