BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Money deposited in savings accounts are F.D.I.C. insured
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Most savings accounts earn a guaranteed rate of interest
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Most savings accounts come with a free credit card
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Money in a savings account can be accessed any time during the day or night
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Detailed explanation-1: -The best reason for depositing money in a bank or credit union savings account instead of keeping your money “under the mattress” is that: a. Money deposited in savings accounts are F.D.I.C. insured.
Detailed explanation-2: -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-3: -The main reason to consider a savings account is the opportunity to earn interest. Think of the interest you earn on savings as a reward for keeping your money in the bank instead of spending it. If you’re looking for the best savings account interest rate, online banks are a good place to start.
Detailed explanation-4: -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-5: -Because savings accounts are not made for everyday transactions, you can store money in the account for longer to collect interest. Savings accounts-especially high-yield savings accounts-typically offer higher annual percentage yields (APYs) than checking accounts, allowing you to grow your money faster.