3. Savings accounts - Their features and fees What Are Savings Accounts and How Do They Work? Savings accounts, or what are more generally called time deposits, are useful as both an emergency fund and a means of increasing your wealth. What are time deposits, and how do they differ from demand deposits? Time deposits differ from demand deposits in that the funds held in held in of time. deposits are available immediately upon your request, while funds deposits are designed to be committed to the institution and unavailable for use by the account holder for an extended period Savings accounts include statement savings accounts and certificates of deposit (CDs). If you do not want to commit your funds for a fixed period of time, which type of savings account should you open? OA statement savings account OA certificate of deposit A variety of different savings products are offered by financial Institutions. Two of the most frequently sold savings investments are statement (or passbook) savings accounts and certificates of deposit (CDs). How do they differ? Read the following statements and classify each as to whether it applies to a statement savings account, a certificate of deposit, or both. Statement You collect your earned interest and the original deposit at the end of the saving period. You may make multiple deposits and withdrawals from the account and are given printed receipts to document these transactions. The account is protected by the FDIC's or NCUSIF's deposit insurance program if held in an insured depository institution. If funds are withdrawn before the end of a specified time period, you will incur an interest penalty ranging from thee months' to six months' worth of interest. The account is often accessible using an ATM. Certificate of Deposit Statement Savings 0 Account What kinds of fees and penalties can be levied on savings accounts? As with checking accounts, savings accounts are subject to fees and penalties. Among the fees and penalties that may be assessed on time deposits: ace pad and excessius withdrawal alties a deposit penalty an inactive account for an early account clasina faa anda dalawade"" f ky Savings mts and ter tes of do they offer? Read the following statements and classify each as to whether it applies to a statement savings account, a certificate of deposit, or both. Statement You collect your earned interest and the original deposit at the end of the saving period. You may make multiple deposits and withdrawals from the account and are given printed receipts. to document these transactions. The account is protected by the FDIC's or NCUSIF's deposit insurance program if held in an insured depository Institution. If funds are withdrawn before the end of a specified time period, you will incur an interest penalty ranging from thee months' to six months' worth of interest. The account is often accessible using an ATM. What kinds of fees and penalties can be levied on savings accounts? Certificate of Deposit Statement Savings Account . As with checking accounts, savings accounts are subject to fees and penalties. Among the fees and penalties that may be assessed on time deposits are early and excessive withdrawal penalties, a deposit penalty, an inactive account fee, an early account closing fee, and a delayed use "cost" of funds. Read the following description and identify the fee or penalty that corresponds to the description. This fee is levied when accounts remain idle, with no deposits or withdrawals, for specified periods such as six months or a year. It is usually referred to as an fee. Grade It Now Save & Continue Continue without saving