Your Friend Requested What Rate Of Interest Your Bank Is Paying On The Account


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About This Quiz As we speak you told your friend how pleased you're with you savings account balance. Your good friend requested what charge of curiosity your bank is paying on the account. If you informed her, she steered that you'll do much better with one in every of a number of money market accounts. Take this quiz that can assist you resolve where to put your cash.


What's a money market account?
a brokerage account used for stock buying and selling


a checking account for exchanging currencies
a savings account with special situations

A cash market account is much like an everyday financial savings account and can be supplied to customers by banks and credit unions. Money market accounts have extra restrictions than a daily financial savings account.


What's the distinction between a money market account and a regular financial savings account?
A money market account pays the next charge of interest than a savings account.

A cash market account sometimes pays a higher fee of interest than does a regular savings account.is that cash market accounts usually require a high minimum.


A money market account carries a higher threat if dollar trading takes a dip.
A cash market account shouldn't be insured like a savings account.

What quantity do most banks require that you just maintain for a minimal stability in a money market account?


$750 to $1,one hundred fifty
$1,000 to $2,000

Most banks require that you simply maintain a minimal balance in the range of $1,000 to $2,000 and there is usually a penalty for slipping under the required minimum.


$2,000 to $2,800
What's another difference between money market accounts and savings accounts?


Money market accounts enable an account holder to jot down a limited variety of checks.
Not like a typical savings account, cash market accounts enable a restricted variety of checks per month. The variety of checks that you may write in a month is normally restricted to three.


Cash market accounts enable the account holder to withdraw 50 percent of the stability without a payment.
Money market accounts enable the account holder to make an unlimited number of withdrawals a month.


Is money that is deposited in a money market account insured in opposition to loss if the financial institution ought to fail?
no


yes
All monies in a money market account are protected by insurance coverage in case your financial institution should fail. There is no such thing as a threat of shedding the money that you invested in a money market account.


insurance is optionally available
What yr was the Federal Deposit Insurance coverage Company created?


1962
1953


1933
The Federal Deposit Insurance Company was created as an impartial federal company in 1933, because so many banks failed during the great Depression. The purpose of deposit insurance coverage was to allay fears that individuals had about trusting banks with their cash.


What's the first technique banks make use of to make money?
Banks make most of their cash by lending cash at a higher price of interest than the curiosity that they pay on deposits.

Banks make most of their cash by lending money that people deposit. They lend cash at greater charges of interest than the interest that they pay for having money deposited in their bank.

Banks make most of their cash by charging charges for processing cash instruments like checks and bonds.


Banks make most of their money by investing cash on deposit on stocks and bonds.
How do banks sometimes calculate the interest that they pay on a cash market account?


Curiosity is calculated on the current stability in your account on the final day of a month.
Interest is calculated on the money in your account compounded daily and paid month-to-month.

Cash market accounts often earn compound interest. The fantastic thing about compound interest is that the financial institution is paying you interest on your cash along with interest on the cash that they paid to you in interest.

Interest is calculated on the average month-to-month stability in your account calculated on the final day of a month.

How much will a financial institution be likely to charge you for each withdrawal that exceeds the utmost allowed in a month?


$Three to $5
$5 to $10

Most banks charge $5 to $10 for each withdrawal that you just make above the utmost allowed restrict. It is important to just remember to keep throughout the allowed number of withdrawals to keep away from hefty fees.


$12 to $15
What's a key to keep in mind when working along with your cash market checking account?


To take advantage of on your money, do your entire banking with a cash administration account.
Treat your money market account like a savings account and make regular deposits.

Try to deal with your cash management account like a savings account so you may maximize your interest earnings. Make the biggest regular deposits to the account you could manage on your finances and watch your cash develop.

You'll only earn compound interest on a cash administration account in case your month-to-month deposits exceed $500.


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