Which account type typically earns interest and allows limited monthly withdrawals?
Savings accounts are designed to earn interest and offer a limited number of withdrawals per month under federal regulations.
What is a primary benefit of a Certificate of Deposit (CD)?
CDs typically offer higher interest rates than regular savings accounts in exchange for keeping funds locked in for a fixed term.
Which type of loan is typically used to finance the purchase of a home?
Mortgages are long-term loans specifically designed to finance the purchase of real estate, usually repaid over 15 to 30 years.
What is the main feature of a checking account?
Checking accounts allow frequent deposits and withdrawals and are commonly used for daily transactions like paying bills.
What does overdraft protection do?
Overdraft protection helps prevent declined transactions and fees by covering the difference when a customer spends more than their account balance.
What type of financial product is best for short-term saving goals?
Savings accounts provide easy access to funds and are suitable for short-term goals like emergency funds or travel savings.