Personal Finance Basics — How accounts, interest, and deposit protection actually work.
Banking is the plumbing of your financial life. Knowing how accounts and interest work helps you avoid fees and earn a little more.
A checking account is built for everyday spending and frequent transactions. A savings account is meant to hold money and earn interest, usually with fewer withdrawals.
APY: Annual percentage yield: the real yearly return on a deposit once compounding is included. A higher APY means more interest earned.
FDIC insurance: Government backed protection for deposits at insured banks, up to a legal limit, if the bank fails. It does not cover investments.
Overdraft fees (spending more than your balance), monthly maintenance fees, and ATM fees quietly add up. Many online banks avoid them entirely.
Two numbers identify a transfer: the routing number identifies the bank, the account number identifies you.
15 practice questions with explanations. Free, and no account is needed to start.