Where do you keep your money? Some people keep their money in a cookie jar, or in the freezer, or in a book. Some people keep their money in wall shelves and furniture with secret compartments. The problem is, thieves know about the secret compartments – they know your hiding places.
We hope that you have your money in a savings account and a checking account. If you have an account, why did you open it? If you don't have an account, we want you to learn why a bank account is not only a safe place to keep your money but is also an important financial tool.
Discussion Board Topic: Checking and Savings Accounts
Answer the following questions about your checking and savings accounts.
- Do you have a checking account?
- Do you have a savings account?
- If you have an account, why did you open it?
Go to the discussion board and answer the above questions.
Consider John Dough:
John Dough recently graduated and was hired by Technix Corp. He thought he had done everything he needed to do, but then there was a surprise. Technix Corp. doesn’t issue paper checks. Employees must have a savings or checking account at a bank or credit union. The company automatically deposits the employees’ pay into their accounts, but John doesn’t have an account. Technix gave him the forms he must complete for the automatic deposit. Now, John is going to visit a local bank about opening a bank account.
The banker told John about the many services the bank provides. After the discussion, John decided that getting a bank account would be a wise choice.
Two of the most popular services provided by banks are checking accounts and savings accounts.
- A checking account is an account held at a bank, credit union or other financial institution in which account owners deposit funds. Account owners have the privilege of writing checks on their accounts and are able to use ATM cards and debit cards to access funds.
- A savings account is an account at a bank, credit union or other financial institution in which account owners deposit funds. Account owners are paid interest on the amount deposited in the account. They have the ability to withdraw funds but do not write checks on these accounts. The number of withdrawals in a given period of time may be limited.
- Checking and savings accounts are a great place to start a financial life. While John may not have thought about opening a savings or checking account before his employer required it, it is generally a good idea to have one. These types of accounts provide a safe place to store money; in fact John was happy to hear that the deposits in his account are insured. The Federal Deposit Insurance Corporation (FDIC) insures deposits in bank accounts, up to $250,000 per person, per institution. And, John was glad to learn that, as in many cases, deposits in his account earn interest.
- Banks also provide many financial services for little or no fee — services that might be relatively expensive other places. John is happy with his new relationship with his neighborhood bank. He wonders how people conduct personal financial business without banking services.