Quiz 4: Managing Your Cash and Savings
Investments like fixed deposits and savings accounts give a very low interest rate. But they should be advised to invest in short term investment schemes which gives them higher interest rates and where there is much less financial risk. They should go for investments in certificate of deposits, treasury bills or U.S. savings bonds where the financial risk is very less since these are provided by the government and they fetch higher return also.
If someone stole the ATM card and withdrew money of $950, then the money we lose according to the federal legislation after reporting to the bank on a) The day the card was stolen- $50 b) 6 days after the theft- $500 c) 65 days after receiving our periodic statement- Whole amount
Factors considered in choosing a Bank • Security of your funds : Should make sure that our bank is insured by the Federal Deposit Insurance Corporation (for banks). • Fees: Should be able to find an account that does not charge you any fees for basic account transactions, like checking the transactions. • ATM fees : If you use your ATM card frequently, consider whether the bank charges fees for ATM usage or not. • Interest rates: Should compare how competitive the interest rates are from other banks. • Online banking features : Transactions should be user friendly and should incur no cost for online transactions. • Minimum balance requirements : Some accounts require you to maintain a minimum balance before they begin charging account fees. The minimum balance should be affordable. • Branch availability: Choose the bank in such a way that it has more number of branches and ATM's available at every important area. • Customer service: Prompt customer service facility should be available. They should be able to provide any type of information at any time (24/7-service).