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Savings Knowledge Quiz

07/08/2019

As saving money is an essential part of everybody’s life, Carthage Savings & Loan encourages you to test your savings knowledge by completing the quiz below. This 5-question test should take less than 10 minutes to complete. Your results are completely anonymous – only you will know how you scored. At the end, you’ll have a chance to check your answers and identify the areas you can learn more about.

1. Which of the following ways is the most ideal game plan for building savings?

  1. Open and maintain a single savings account for the duration of your life.
  2. Allow your checking account to double as your savings account.
  3. Set up several different savings accounts.
  4. Keep all saved cash in your mattress.

2. True or False: When addressing your debt, you should save up enough money to pay it all off at once.

  1. True
  2. False

3. What is a Certificate of Deposit (CD)?

  1. A savings account with high interest rates that you can withdraw from at any time
  2. A bond that you can give to your family members as a meaningful gift
  3.  A receipt that shows you deposited a certain amount into your savings account
  4. A type of savings account that restricts access to your funds for a set term

4. Which type of savings account abides by federal regulations that limit transfers and electronic payments to a maximum of six times per month or statement cycle?

  1. Statement Savings Account
  2. Money Market Account
  3.  Individual Retirement Account (IRA)
  4. All of the above

5. True or False: To access your 401(k) plan funds without penalty, you must wait until you reach the age of 65.

  1. True
  2. False

Check Your Answers

1. The correct answer is C. The best way to build up your savings is to open several different savings accounts. From statement savings to money market accounts at Carthage Savings & Loan, you can take advantage of competitive interest rates and terms so your money can grow in more ways than one.

2. This is false. The best way to address your debt is by making steady, on-time payments while continuing to funnel money into your savings account. While becoming debt-free is an important goal, you also need to have funds for emergencies and unexpected expenses.

3. The correct answer is D. A great way to save is by restricting access to your funds, and a CD does just that. We offer attractive interest rate terms ranging from 6 to 72 months at Carthage Savings & Loan.

4. D is the correct answer. No matter what type of savings account you open, these federal limitations apply to all of them.

5. This is false. If you are no longer a part of the company with which you have your retirement plan in place, you can start withdrawing funds at age 55, or at age 59.5 if you’re employed elsewhere.

How You Scored

If you got all of these questions right, you have a solid understanding of what it means to have an effective savings strategy. If you got 1-2 answers wrong, that’s okay – you’re off to a solid start, and it’s easy to improve your knowledge. If more than three of your answers were incorrect, it might be time to pay us a visit at Carthage Savings & Loan. We rely on our extensive experience to educate our local community on the importance of savings savvy. We’ll thoroughly explain all of our savings account options and help you strategize for a bright financial future. For more information, contact us today.

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