Your Pal Asked What Fee Of Curiosity Your Bank Is Paying On The Account
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About This Quiz In the present day you instructed your friend how happy you might be with you savings account steadiness. Your good friend asked what charge of curiosity your bank is paying on the account. When you instructed her, she recommended that you'd do a lot better with certainly one of a number of cash market accounts. Take this quiz that will help you resolve where to put your cash.
What's a cash market account?
a brokerage account used for inventory buying and selling
a checking account for exchanging currencies
a financial savings account with particular circumstances
A money market account is similar to an everyday financial savings account and is also offered to customers by banks and credit score unions. Money market accounts have more restrictions than a regular financial savings account.
What's the distinction between a cash market account and a daily savings account?
A cash market account pays a higher price of curiosity than a savings account.
A cash market account typically pays the next price of interest than does a regular financial savings account. The down aspect is that money market accounts often require a high minimum.
A money market account carries the next risk if greenback buying and selling takes a dip.
A money market account will not be insured like a savings account.
Whatdo most banks require that you simply maintain for a minimum steadiness in a cash market account?
$750 to $1,one hundred fifty
$1,000 to $2,000
Most banks require that you simply maintain a minimal steadiness in the range of $1,000 to $2,000 and there is usually a penalty for slipping beneath the required minimum.
$2,000 to $2,800
What's one other difference between cash market accounts and financial savings accounts?
Cash market accounts allow an account holder to write a limited variety of checks.
Not like a typical savings account, cash market accounts permit a restricted variety of checks per thirty days. The number of checks that you could be write in a month is normally restricted to 3.
Cash market accounts enable the account holder to withdraw 50 percent of the steadiness with no price.
Money market accounts permit the account holder to make a vast number of withdrawals a month.
Is money that's deposited in a money market account insured towards loss if the bank should fail?
no
yes
All monies in a cash market account are protected by insurance in case your financial institution should fail. There isn't a danger of dropping the money that you invested in a money market account.
insurance is elective
What 12 months was the Federal Deposit Insurance coverage Corporation created?
1962
1953
1933
The Federal Deposit Insurance coverage Corporation was created as an unbiased federal agency in 1933, as a result of so many banks failed throughout the good Depression. The aim of deposit insurance coverage was to allay fears that individuals had about trusting banks with their money.
What is the primary technique banks make use of to generate profits?
Banks make most of their money by lending money at a higher fee of interest than the interest that they pay on deposits.
Banks make most of their money by lending money that people deposit. They lend cash at higher rates of curiosity than the curiosity that they pay for having money deposited in their bank.
Banks make most of their cash by charging fees for processing cash devices like checks and bonds.
Banks make most of their money by investing money on deposit on stocks and bonds.
How do banks usually calculate the interest that they pay on a cash market account?
Interest is calculated on the present steadiness in your account on the final day of a month.
Curiosity is calculated on the money in your account compounded each day and paid monthly.
Cash market accounts normally earn compound interest. The great thing about compound curiosity is that the bank is paying you interest on your cash in addition to curiosity on the cash that they paid to you in interest.
Interest is calculated on the common monthly stability in your account calculated on the final day of a month.
How much will a financial institution be prone to cost you for each withdrawal that exceeds the utmost allowed in a month?
$3 to $5
$5 to $10
Most banks charge $5 to $10 for every withdrawal that you simply make above the maximum allowed limit. It is very important just be sure you keep throughout the allowed variety of withdrawals to avoid hefty fees.
$12 to $15
What is a key to remember when working together with your cash market bank account?
To take advantage of in your cash, do all your banking with a money administration account.
Treat your cash market account like a financial savings account and make regular deposits.
Attempt to treat your cash administration account like a savings account so you can maximize your interest earnings. Make the most important regular deposits to the account that you may manage in your price range and watch your cash grow.
You will solely earn compound interest on a money management account if your month-to-month deposits exceed $500.
Photodisc/Getty Photos
About This Quiz In the present day you instructed your friend how happy you might be with you savings account steadiness. Your good friend asked what charge of curiosity your bank is paying on the account. When you instructed her, she recommended that you'd do a lot better with certainly one of a number of cash market accounts. Take this quiz that will help you resolve where to put your cash.
What's a cash market account?
a brokerage account used for inventory buying and selling
a checking account for exchanging currencies
a financial savings account with particular circumstances
A money market account is similar to an everyday financial savings account and is also offered to customers by banks and credit score unions. Money market accounts have more restrictions than a regular financial savings account.
What's the distinction between a cash market account and a daily savings account?
A cash market account pays a higher price of curiosity than a savings account.
A cash market account typically pays the next price of interest than does a regular financial savings account. The down aspect is that money market accounts often require a high minimum.
A money market account carries the next risk if greenback buying and selling takes a dip.
A money market account will not be insured like a savings account.
Whatdo most banks require that you simply maintain for a minimum steadiness in a cash market account?
$750 to $1,one hundred fifty
$1,000 to $2,000
Most banks require that you simply maintain a minimal steadiness in the range of $1,000 to $2,000 and there is usually a penalty for slipping beneath the required minimum.
$2,000 to $2,800
What's one other difference between cash market accounts and financial savings accounts?
Cash market accounts allow an account holder to write a limited variety of checks.
Not like a typical savings account, cash market accounts permit a restricted variety of checks per thirty days. The number of checks that you could be write in a month is normally restricted to 3.
Cash market accounts enable the account holder to withdraw 50 percent of the steadiness with no price.
Money market accounts permit the account holder to make a vast number of withdrawals a month.
Is money that's deposited in a money market account insured towards loss if the bank should fail?
no
yes
All monies in a cash market account are protected by insurance in case your financial institution should fail. There isn't a danger of dropping the money that you invested in a money market account.
insurance is elective
What 12 months was the Federal Deposit Insurance coverage Corporation created?
1962
1953
1933
The Federal Deposit Insurance coverage Corporation was created as an unbiased federal agency in 1933, as a result of so many banks failed throughout the good Depression. The aim of deposit insurance coverage was to allay fears that individuals had about trusting banks with their money.
What is the primary technique banks make use of to generate profits?
Banks make most of their money by lending money at a higher fee of interest than the interest that they pay on deposits.
Banks make most of their money by lending money that people deposit. They lend cash at higher rates of curiosity than the curiosity that they pay for having money deposited in their bank.
Banks make most of their cash by charging fees for processing cash devices like checks and bonds.
Banks make most of their money by investing money on deposit on stocks and bonds.
How do banks usually calculate the interest that they pay on a cash market account?
Interest is calculated on the present steadiness in your account on the final day of a month.
Curiosity is calculated on the money in your account compounded each day and paid monthly.
Cash market accounts normally earn compound interest. The great thing about compound curiosity is that the bank is paying you interest on your cash in addition to curiosity on the cash that they paid to you in interest.
Interest is calculated on the common monthly stability in your account calculated on the final day of a month.
How much will a financial institution be prone to cost you for each withdrawal that exceeds the utmost allowed in a month?
$3 to $5
$5 to $10
Most banks charge $5 to $10 for every withdrawal that you simply make above the maximum allowed limit. It is very important just be sure you keep throughout the allowed variety of withdrawals to avoid hefty fees.
$12 to $15
What is a key to remember when working together with your cash market bank account?
To take advantage of in your cash, do all your banking with a money administration account.
Treat your cash market account like a financial savings account and make regular deposits.
Attempt to treat your cash administration account like a savings account so you can maximize your interest earnings. Make the most important regular deposits to the account that you may manage in your price range and watch your cash grow.
You will solely earn compound interest on a money management account if your month-to-month deposits exceed $500.
Photodisc/Getty Photos
