Checking vs savings, FDIC insurance, high-yield accounts, CDs, and emergency fund size.
39 cards · basic cards · AI-written, checked twice. Edit anything.
- What is a checking account primarily used for?
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Making daily deposits, withdrawals, and payments- Do checking accounts typically pay interest?
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No, most checking accounts pay little to no interest- What is overdraft protection?
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A service that covers withdrawals exceeding your balance, usually with a fee- Name three common checking account fees
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Monthly maintenance, overdraft, and NSF (insufficient funds) fees- What is a savings account primarily used for?
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Storing money for future goals and building a financial cushion- Do savings accounts pay interest?
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Yes, banks pay interest on the balance you keep in a savings account- What does APY stand for?
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Annual Percentage Yield- What withdrawal limits applied to US savings accounts historically?
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Six withdrawals per month (Regulation D, repealed in 2020)- What is a high-yield savings account?
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A savings account with a higher interest rate than regular savings accounts, usually at online banks- Where are high-yield savings accounts typically offered?
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Online banks and credit unions, not traditional brick-and-mortar banks- Why do online banks offer higher savings rates?
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Lower operating costs with no physical branches, so they pass savings to customers- What does FDIC stand for?
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Federal Deposit Insurance Corporation- What is the FDIC coverage limit per depositor per bank?
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250,000 dollars- Does FDIC insurance cover stocks and bonds?
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No, FDIC insurance only covers deposits, not securities or investments- If a bank fails, are FDIC-insured deposits safe?
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Yes, the FDIC reimburses depositors up to the coverage limit
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