Basics of Banking Products and Services Flashcards Preview

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Flashcards in Basics of Banking Products and Services Deck (16):
1

Cons:

  • low interest rate

(statement) savings account

2

proissory note issued by bank or credit union that pays higher rate of interest than most savings accounts; it is a time deposit that restricts depositors from withdrawing funds on demand without paying a penalty; the term is usually between one month and 5 years

certificate of deposit (CD) 

aka Time Deposit

3

What banking product would you choose if....

Do not have a big balance, need immediate access to money, and need a safe place to put money away for future use

(statement) savings account

4

Cons:

  • committed to keep money on deposit for a specified amount of time
  • pay penalty if withdraw money early

certificate of deposit (cd)

aka time deposit

5

Cons:

  • high minimum balance requirement
  • high monthly fees if balance requirement is not met
  • limited amount of withdraws allowed

money market account

6

a transactional deposit account that allows for withdraws and deposits; highly liquid and money can be withdrawn using checks, ATMs, debit cards, electronic debits, etc

checking account

7

Pros:

  • FDIC insured
  • safer alternative to pay bills
  • can link to Visa/Mastercard
  • immediate access to money
  • easy to deposit and withdraw funds

checking account

8

type of savings account that offers higher rate of interest in exchange for maintaining higher balance and limited amount of withdraws per month

money market account

9

What banking product would you choose if....

 

Are looking for convenient and safe way to pay bills and need immediate access to money

checking account

10

Pros:

  • FDIC insured
  • earn higher rate of interest
  • can write checks

money market account

11

What banking product would you choose if....

 

Looking for higher interest, are too scared to put money in stocks, and don't need access to the money just yet

certificate of deposit (cd)

aka time deposit

12

Pros:

  • FDIC insured
  • earn interest
  • easty to deposit and withdraw funds
  • low minimum balance requirement

(statement) savings account

13

account where yu put money away for future use

(statement) savings account

14

Pros:

  • FDIC insured
  • higher rate of interest

certificate of deposit (CD)

aka time deposit

15

What banking product would you choose if....

Looking for higher interest rate and too scared to put money in stocks, can keep a high account balance and do not make withdrawals

money market account

16

Cons:

  • very little or no interest
  • can result in many fees if not managed properly

checking account