Get Certified for Free Browse courses

Personal Finance · Level 2 of 5 · Foundations

Banking and emergency savings

Accounts, fees, deposit insurance, and an emergency fund.

Study notes

  1. Checking accounts are for everyday spending. Savings accounts are for money you are setting aside.
  2. FDIC insurance protects deposits at insured banks up to $250,000 per depositor, per insured bank, for each account ownership category. NCUA provides similar coverage at federally insured credit unions.
  3. Watch for fees: monthly maintenance, overdraft, out-of-network ATM fees. Many banks waive fees with direct deposit or a minimum balance.
  4. An emergency fund covers surprises like car repairs or job loss. A common target is three to six months of essential expenses.
  5. High-yield savings accounts often pay more interest than standard savings. Compare the annual percentage yield (APY).

Quiz: 6 questions

Choose one answer for each question, then check your answers. Score 5 of 6 to pass. Then enter your name and email to download a PDF certificate and have a copy emailed to you. Answers are graded in your browser.

1. FDIC standard coverage is up to how much per depositor, per insured bank, per ownership category?

2. Essential expenses are $2,500 a month. A three-month emergency fund is:

3. Which number compares savings account interest?

4. What is an overdraft fee?

5. Credit union deposits are typically insured by:

6. Why keep an emergency fund in savings instead of stocks?

About this certificate: Certificates are issued by Get Certified for Free for passing a free online knowledge quiz. They are not accredited, licensed, government, academic, or professional credentials and do not confer a license. Read the full terms.