Personal Finance: Account Types

Offers investment opportunities

Earns high interest rates

Allows for long-term savings

Provides access to money for everyday needs

Checking accounts offer limited access to avoid impulse buys

Savings accounts are designed for spending

Checking accounts pay higher interest rates

Savings accounts pay interest on balances

No, only one account is necessary

Yes, but only if you have a high income

Yes, because they serve different purposes

No, it's better to have multiple checking accounts

True

False

High returns, no penalties for early withdrawal, no inflation risk

Low returns, penalties for early withdrawal, inflation risk

Guaranteed returns, no penalties for early withdrawal, market risk

Variable returns, no penalties for early withdrawal, interest rate risk

Generally has lower fees than a passively managed index fund

Is managed by a fund manager who charges a fee

Always performs better than an index fund

Is a mix of two types of stocks and two types of bonds to diversify your portfolio

Accounts offered by banks to save money with fixed interest rates.

Funds managed by professional fund managers to invest pooled money from investors.

Government-issued bonds to support public funding.

Private investment opportunities for accredited investors only.

By direct cash payments from the employee.

Through deductions from the employer's profits.

By contributing portions of your paycheck to the account.

Through yearly tax returns.

Take a percentage as a service fee.

MATCH your contribution.

Invest it in the company's stock exclusively.

Return it at the end of the fiscal year.