Question

1. complete the table with three ways you can deposit money into your checking account and three ways you can withdraw money from it. highlight the method for each that you think you would use most frequently.

deposit $ into account\twithdraw $ from account

1. what is one advantage of opening a checking account at a credit union?

1. explain the main differences between a checking account and a savings account. why is it important to have both?

1. match each of the budgeting strategies with its closest description.

i. typically offers high interest rates for a standard savings account, but has no physical bank branches
ii. typically offers the highest interest rate, but restricts access to funds for a set period of time
iii. provides easy access to funds and has physical bank branches, but typically offers the lowest interest rates
iv. typically offers high interest rates, but requires a minimum balance and offers limited ability to write checks

Explanation:

Question 11 (Completing the Table)

Deposit $ into Account:

1. Direct Deposit (most frequent: often used for paychecks, automatic and convenient).
2. Cash Deposit at Bank Branch (visit a physical bank to deposit cash).
3. Mobile Check Deposit (use a banking app to deposit a check by taking a photo).

Withdraw $ from Account:

1. Debit Card Purchase (most frequent: easy for daily transactions).
2. ATM Withdrawal (access cash from an ATM using a debit card).
3. Writing a Check (traditional method for larger, tracked payments).

Question 12 (Advantage of Credit Union Checking Account)

Credit unions are member - owned, so they often offer lower fees (e.g., no monthly maintenance fees, lower ATM fees) and better interest rates on checking accounts compared to traditional banks. They also provide personalized customer service as they focus on serving their members’ financial needs.

• Checking Account: Designed for daily transactions (debit card use, checks, bill payments). It has easy access to funds but typically offers little to no interest.
• Savings Account: Designed for saving money (emergency funds, long - term goals). It offers interest (to grow savings) but has restrictions on the number of monthly withdrawals (to encourage saving).

• Importance of Both: A checking account handles day - to - day spending, while a savings account helps grow money over time. Together, they support both short - term liquidity (checking) and long - term financial goals (savings).

Answer:

One advantage is that credit unions often offer lower fees (e.g., no monthly service fees) and better interest rates on checking accounts because they are member - owned and prioritize members’ financial well - being.

Question 13 (Checking vs. Savings Account)