Question

three of these statements best describe a checking account. which statement best describes a savings account?
this account is automatically debited when you use a debit card.
this account typically allows an unlimited number of transactions per month.
this account pays you interest on money you have put away for later to help your money grow.
this account offers a convenient way to pay bills and access cash from an atm.

which of the following accounts charges a penalty for withdrawing money and breaking the contract (could be a 6 month, 1 year, 2 year, 5 year, etc. contract)
a savings account
an online savings account
a money market
cd - certificate of deposit

Explanation:

• For question 9: A savings account is mainly for saving money and typically pays interest on the deposited amount. Checking accounts are more for day - to - day transactions (like being debited with a debit card, unlimited transactions, paying bills easily).
• For question 10: A Certificate of Deposit (CD) has a fixed term (e.g., 6 months, 1 year etc.). If you withdraw money before the term ends (breaking the contract), you are charged a penalty. Savings accounts (including online savings) and money market accounts do not have this contract - breaking penalty in the same way as CDs.

Answer:

1. This account pays you interest on money you have put away for later to help your money grow.
2. CD - Certificate of Deposit