Banking Accounts Quiz

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.