Podcast
Questions and Answers
Which of the following are federally insured financial institutions? (Select all that apply)
Which of the following are federally insured financial institutions? (Select all that apply)
- Credit unions (correct)
- Banks & thrifts (correct)
- Insurance companies
- Mortgage companies
Which of the following is a good reason to use a bank?
Which of the following is a good reason to use a bank?
- Money insured
- Money is safe
- You can access money quickly
- All of the above (correct)
Who can cash a check for you?
Who can cash a check for you?
Bank teller
A savings account is a good place to save for goals such as a car or college tuition.
A savings account is a good place to save for goals such as a car or college tuition.
Investments in non-deposit accounts are NOT insured by the FDIC. Which of the following are included?
Investments in non-deposit accounts are NOT insured by the FDIC. Which of the following are included?
What do you typically need to provide before opening a bank account?
What do you typically need to provide before opening a bank account?
It does not make sense to shop around before opening a checking or savings account because most financial institutions offer the same services, fees, and interest rates.
It does not make sense to shop around before opening a checking or savings account because most financial institutions offer the same services, fees, and interest rates.
If Todd receives a $120.00 paycheck and deposits it into his savings account, what is his new balance if his opening balance was $1,000?
If Todd receives a $120.00 paycheck and deposits it into his savings account, what is his new balance if his opening balance was $1,000?
What is Todd's new checking account balance if he starts with $500.00, writes a check for $35.00, and withdraws $20.00?
What is Todd's new checking account balance if he starts with $500.00, writes a check for $35.00, and withdraws $20.00?
What do you call the fee charged by a bank for bouncing a check?
What do you call the fee charged by a bank for bouncing a check?
If you receive interest on your checking or savings account, you should add it to your account balance.
If you receive interest on your checking or savings account, you should add it to your account balance.
What deposits can some banks waive the monthly maintenance fee for?
What deposits can some banks waive the monthly maintenance fee for?
What can you access with online banking?
What can you access with online banking?
You should choose to OPT IN to restrict the amount of personal financial information shared with other financial institutions when you receive a privacy notice.
You should choose to OPT IN to restrict the amount of personal financial information shared with other financial institutions when you receive a privacy notice.
If someone offers you a free weekend trip but asks for your credit card number to get a coupon, what should you do?
If someone offers you a free weekend trip but asks for your credit card number to get a coupon, what should you do?
If a customer service representative asks for your SSN to verify your identity, what should you do?
If a customer service representative asks for your SSN to verify your identity, what should you do?
What is Pharming?
What is Pharming?
What is Phishing?
What is Phishing?
What is Skimming?
What is Skimming?
If Fees4Cash charges Jasmine $5.00 to cash every paycheck, how much does she pay each month if she is paid 4 times a month?
If Fees4Cash charges Jasmine $5.00 to cash every paycheck, how much does she pay each month if she is paid 4 times a month?
Aunt Sylvia pays $18.00 per year for her checking account because there are no maintenance fees. The only cost is the box of checks.
Aunt Sylvia pays $18.00 per year for her checking account because there are no maintenance fees. The only cost is the box of checks.
How much can Jasmine save if she opens a checking account and pays what Aunt Sylvia does?
How much can Jasmine save if she opens a checking account and pays what Aunt Sylvia does?
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Study Notes
Banking Basics
- Federally insured financial institutions include banks, thrifts, and credit unions.
- Reasons to use a bank include money safety, quick access to funds, and insurance coverage.
- A bank teller is the employee who can cash checks for customers.
- Savings accounts are suitable for saving towards goals like purchasing a car or paying for college tuition.
Investment and Account Considerations
- Non-deposit accounts like stocks, mutual funds, and bonds lack FDIC insurance, risking loss of investment.
- When opening a bank account, customers typically need photo identification and a social security or ITIN number.
- It's essential to shop around for checking or savings accounts as financial institutions may offer varying services, fees, and interest rates.
Account Balances and Fees
- Todd’s savings account increased to $1,120.00 after depositing a $120 paycheck from an initial balance of $1,000.
- After writing a $35 check and withdrawing $20, Todd's checking account balance dropped to $445.00.
- An overdraft fee, typically charged when a check bounces, can be around $35.00.
Account Management Practices
- Interest earnings on checking or savings accounts should be added to the account balance.
- Monthly maintenance fees may be waived through direct deposit arrangements with employers or government agencies.
- Online banking provides 24/7 access to view balances, conduct transactions, and modify account details.
Privacy and Security
- Opting in via a privacy notice does not restrict sharing financial information; it’s incorrect to assume it does.
- Avoid sharing sensitive information like credit card numbers over the phone, especially with unsolicited offers, to prevent fraud.
- It's acceptable to provide social security numbers in secure situations, like verifying identity with your bank.
Fraud Awareness
- Pharming refers to phishing attacks that redirect users to counterfeit websites, while phishing involves deceptive emails seeking private information.
- Skimming involves criminal theft of card information using hidden devices during transactions.
Cost Analysis of Financial Services
- Using Fees4Cash, Jasmine incurs a charge of $5.00 per paycheck, totaling $20-$25 monthly if paid four times each month.
- Although Aunt Sylvia faces a $6.00 monthly maintenance fee, she pays only for checks since direct deposit avoids this fee, resulting in an annual expense of $18.00.
- Jasmine could save $242.00 annually by switching to a checking account instead of continuing her current check-cashing service at Fees4Cash.
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