BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Most savings accounts come with a free credit card.
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Most savings accounts earn a guaranteed rate of interest.
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Money in a savings account can be accessed any time during the day or night.
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Money deposited ina savings account is FDIC insured.
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Detailed explanation-1: -Money earns a higher rate of interest in a savings account than in a checking account that pays interest. Money is easy to withdraw from a checking or a savings account. Money kept “under the mattress” could be stolen or lost in a fire and does not earn interest.
Detailed explanation-2: -Your money will be protected from theft and fires. Plus, your money will be federally insured so if your bank or credit union closes, you will get your money back. The maximum amount of money that can be insured is $100, 000. Many banks offer an interest rate when you put your money in a savings account.
Detailed explanation-3: -Credit unions typically offer lower fees, higher savings rates, and a more personalized approach to customer service for their members. In addition, credit unions may offer lower interest rates on loans. It may also be easier to obtain a loan with a credit union than a larger bank.
Detailed explanation-4: -Money and Credit (i) People can earn interest on the deposited money. (ii) People have the provisions to withdraw the money as and when they require. (iii) People can also make payments through cheques.