Podcast
Questions and Answers
What is the main purpose of a chequing account?
What is the main purpose of a chequing account?
Which bank account is designed for storing money not intended for daily expenses?
Which bank account is designed for storing money not intended for daily expenses?
What is the main function of e-transfer (Electronic Funds Transfer)?
What is the main function of e-transfer (Electronic Funds Transfer)?
Which feature of online banking allows users to pay bills electronically from a bank account?
Which feature of online banking allows users to pay bills electronically from a bank account?
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What is a mortgage?
What is a mortgage?
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What does the amortization period refer to?
What does the amortization period refer to?
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What is a down payment?
What is a down payment?
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What does the term 'principal' refer to in a loan context?
What does the term 'principal' refer to in a loan context?
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What is the purpose of a debit card?
What is the purpose of a debit card?
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What is direct deposit commonly used for?
What is direct deposit commonly used for?
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What does pre-authorized payment involve?
What does pre-authorized payment involve?
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What does an account summary provide?
What does an account summary provide?
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What does it mean to transfer funds?
What does it mean to transfer funds?
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Study Notes
Chequing Account
- Primarily used for daily transactions including deposits, withdrawals, and bill payments.
- Offers easy access to funds through checks, debit cards, and online banking.
Savings Account
- Designed for storing money that is not intended for immediate daily expenses.
- Often earns interest, encouraging savings over spending.
e-Transfer (Electronic Funds Transfer)
- Allows users to send and receive money electronically, typically through online or mobile banking.
- Facilitates quick and secure transactions without needing physical cash.
Online Bill Payment
- Feature of online banking that enables users to pay bills electronically from their bank account.
- Offers convenience and often includes options for automatic payments.
Mortgage
- A loan specifically used to purchase real estate, typically secured by the property itself.
- Requires regular payments over an agreed term, often spanning 15 to 30 years.
Amortization Period
- Refers to the duration over which a loan is repaid through regular payments.
- Impacts the total interest paid over the life of the loan, with longer periods usually resulting in higher total interest.
Down Payment
- An upfront payment made when purchasing a home, which reduces the total loan amount.
- Typically expressed as a percentage of the property's purchase price.
Principal
- Refers to the initial sum of money borrowed in a loan agreement.
- This amount excludes interest and is the focus of repayment until fully paid off.
Debit Card
- A payment card that deducts money directly from a user's bank account for purchases.
- Enables seamless access to funds, both for in-store and online transactions.
Direct Deposit
- A method used primarily for depositing wages or government benefits directly into a bank account.
- Offers convenience and security, reducing the risk of lost or stolen checks.
Pre-Authorized Payment
- Involves setting up automatic withdrawals from a bank account for recurring expenses, like subscriptions or bills.
- Simplifies payment management and helps avoid missed payments.
Account Summary
- Provides a snapshot of all account transactions, including deposits, withdrawals, and balances.
- Assists in tracking spending, budgeting, and overall financial health.
Fund Transfer
- The process of moving money from one bank account to another, which can occur within the same bank or between different banks.
- Includes various methods such as wire transfers and electronic transfers.
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Description
Test your knowledge about different types of bank accounts, including chequing and savings accounts. Learn the features and uses of each type of account.
