what are savings accounts, checking accounts and certificates of deposit (CDs). What are the requirements for...
what are savings accounts, checking accounts and certificates of deposit (CDs). What are the requirements for opening each account, interest rate, fees and other charges. Which of these accounts do you need and why?
Homework Answers
Savings Accounts:
Meaning- Savings accounts are the deposit account on which you earn interest. Such accounts are held at a Commercial Bank or any other financial institution.
Rate of Interest- Traditionally, these accounts pay-out a moderate interest rate
Fees/other charges- They are generally opened at free of cost but you have to maintain minimum prescribed balance to avoid any fees
Reason/Suitability- It is due to their safety and simplicity in terms of operations make them a great option for depositing money you want available for future needs(generally short term)
Requirement: Savings accounts are opened very easily. Name, Address, Photo-identification are required.Social security number is also required.
Checking Accounts:
Meaning- They are extremely liquid deposit account that allows numerous withdrawals and deposits.
Rate of interest- Generally they offer no interest rate or lower interest rates than a savings account. If they provide an overdraft facility(where the balance in the account is negative), interest is inturn charged to the customer.
Reason/Suitability: They are generally suitable for business or commercial purposes.
Requirement: In addition to the requirements in case of savings account, your banking history is required by the banks in form of a report named Consumer Banking Report.
Certificate of Deposits:
Meaning: A certificate of deposit (CD) is a contract between a bank and a depositor for a fixed period of time. The latter is called term. The depositor entrusts his money to the bank and for this, it pays an interest rate to the deposit owner. CDs are low-risk and low-return investments and are not suitable for people who need cash at the moment.
Rate of interest: They offer a Fixed rate for the term(unless flexi-rate CD). The rate of interest is generally higher than savings bank accounts. Higher the term higher the interest rate offered
Reason/Suitability: Usually, people buy CD accounts because they have some spare money they do not need in the near future.
Requirements: Minimum deposit, which is decided by each bank, is required to open each CD.
Add Answer to:
what are savings accounts, checking accounts and certificates of deposit (CDs). What are the requirements for...
2.(11') Checking/savings. Suppose a person has three accounts: checking, savings and retirement. Each month, the checking...
2.(11') Checking/savings. Suppose a person has three accounts: checking, savings and retirement. Each month, the checking account is credited with a pay check. Each month the person pays rent, utilities, and other expenses from the checking account and makes a deposit into savings and into retirement (assume all these amounts are the same from month to month). The checking account has a monthly fee and earns no interest. The savings and retirement accounts earn interest. Furthermore, the person has a...
4. Interest-paying checking accounts - Their features and uses What Are Interest-Paying Checking Accounts and How...
4. Interest-paying checking accounts - Their features and uses What Are Interest-Paying Checking Accounts and How Do They Work? Most interest-paying checking accounts exhibit characteristics of both checking and savings accounts. Specifically, they earn relatively high rates of interest, especially compared with regular savings accounts, and allow relatively limited check-writing privileges. They are available through depository and nondepository institutions, including commercial banks, savings banks, credit unions, stock brokerage firms, mutual funds, and other financial services companies. What are some of...
A local bank offers services that national banks offer, such as savings checking accounts, loans, CDs...
A local bank offers services that national banks offer, such as savings checking accounts, loans, CDs and safety deposit boxes. To attract customers, the bank differentiates itself through its friendly personal service, local involvement with the community, and fee-free ATMs around the region. Which pricing model would be the best choice for the local bank to choose?
First State Bank offers a wide range of banking services, including checking accounts, certificates of deposit,...
First State Bank offers a wide range of banking services, including checking accounts, certificates of deposit, loans, credit cards, and safety deposit boxes. Bank managers know that customer satisfaction has a direct impact on the bank’s ability to retain customers and to persuade them to add accounts. Think of your experiences with your bank. What specific measures might bank managers monitor to gauge customer satisfaction and to link customer retention with account growth?
C++ Design and implement a hierarchy inheritance system of banking, which includes Savings and Checking accounts...
C++ Design and implement a hierarchy inheritance system of banking, which includes Savings and Checking accounts of a customer. Inheritance and virtual functions must be used and applied, otherwise, there is no credit. The following features must be incorporated: 1. The account must have an ID and customer’s full name and his/her social security number. 2. General types of banking transactions for both accounts, Checking and Savings: withdraw, deposit, calculate interest (based on the current balance, and if it was...
Littleton Corporation reports the following information: Balance in National Bank checking account $13,002 Certificates of deposit...
Littleton Corporation reports the following information: Balance in National Bank checking account $13,002 Certificates of deposit 4,000 Petty cash 100 Cash on hand 2,580 Employees' IOUs 226 Balance in Society Bank checking account (300) Customer's postdated check 168 Balance in Peoples Savings and Loan savings account 9,000 Show all work. Compute the correct amount of cash that will appear as a current asset on Littleton Corporation's balance sheet.
What about time deposits, such as certificates of deposit (CDs)? Would banks be able to invest...
What about time deposits, such as certificates of deposit (CDs)? Would banks be able to invest those and earn a profit? If yes, what would that mean for the stability and profitability of the banking system?
5. Checking accounts and their fees What Features and Fees Are Associated with Checking Accounts? Checking...
5. Checking accounts and their fees What Features and Fees Are Associated with Checking Accounts? Checking accounts, or what are more generally called checkable deposits, are accounts that allow account holders to write checks against the balance. In addition to checks, these accounts usually offer debit, or check, cards that account holders can use either in an automated teller machine (ATM) or in a point-of-sale (POS) terminal. What is the difference between checking accounts? There are two major types of...
List and explain the reserve requirements for banks in 2016 for checking accounts and savings accounts.
List and explain the reserve requirements for banks in 2016 for checking accounts and savings accounts.
(1 point) (Exercise 2.25) Many banks quote two rates of interest on certificates of deposit (CDs)....
(1 point) (Exercise 2.25) Many banks quote two rates of interest on certificates of deposit (CDs). If a bank quotes 6.5% compounded quarterly, find the ratio of the APY (annual percentage yield) to the quoted rate for this CD. ANSWER = $
2.(11') Checking/savings. Suppose a person has three accounts: checking, savings and retirement. Each month, the checking account is credited with a pay check. Each month the person pays rent, utilities, and other expenses from the checking account and makes a deposit into savings and into retirement (assume all these amounts are the same from month to month). The checking account has a monthly fee and earns no interest. The savings and retirement accounts earn interest. Furthermore, the person has a...
4. Interest-paying checking accounts - Their features and uses What Are Interest-Paying Checking Accounts and How Do They Work? Most interest-paying checking accounts exhibit characteristics of both checking and savings accounts. Specifically, they earn relatively high rates of interest, especially compared with regular savings accounts, and allow relatively limited check-writing privileges. They are available through depository and nondepository institutions, including commercial banks, savings banks, credit unions, stock brokerage firms, mutual funds, and other financial services companies. What are some of...
5. Checking accounts and their fees What Features and Fees Are Associated with Checking Accounts? Checking accounts, or what are more generally called checkable deposits, are accounts that allow account holders to write checks against the balance. In addition to checks, these accounts usually offer debit, or check, cards that account holders can use either in an automated teller machine (ATM) or in a point-of-sale (POS) terminal. What is the difference between checking accounts? There are two major types of...
(1 point) (Exercise 2.25) Many banks quote two rates of interest on certificates of deposit (CDs). If a bank quotes 6.5% compounded quarterly, find the ratio of the APY (annual percentage yield) to the quoted rate for this CD. ANSWER = $
Most questions answered within 3 hours.
-
A group of 100 race car drivers have an average speed of 102
mph. Assuming a...
asked 7 seconds from now -
You are waiting at the bus stop for a bus, which arrives every X
minutes, where...
asked 1 minute ago -
A 66 Ω resistor and a 7.5 μF capacitor are connected in series
to an ac...
asked 8 minutes ago -
Stefani German, a 40-year-old woman, plans to retire at age
65, and she wants to accumulate...
asked 8 minutes ago -
To test Upper H 0 : sigma =2.3 versus Upper H 1 : sigma greater
than...
asked 40 minutes ago -
explain using physics theory either one
Why should you not put foil in the microwave? or...
asked 57 minutes ago -
You have purchased a $1,000,000 million Face or Par Value 5-year
T-note. This 5-year T-note pays...
asked 55 minutes ago -
Describe what “scope creep” is and how can it be avoided? Who is
typically the person...
asked 45 minutes ago -
Any permanent decrease in autonomous real spending will cause
even larger decreases in real GDP per...
asked 46 minutes ago -
A large distributor has 8 retail outlets. Currently each outlet
manages its ordering independently. Demand at...
asked 58 minutes ago -
Two objects repel/attract each other. What can one say about their
charges?
asked 54 minutes ago -
9 A website that facilitates transactions by bringing together
buyers and sellers from all over the...
asked 59 minutes ago