Slide MGT312 Slide03

Checking and Savings
Account
Chapter 5

Tools of Monetary Asset
Management

• Low-cost, interest-earning checking
accounts (Type 1).

• Interest-earning savings account (Type 2).
• Money market accounts (Type 3).

Monetary Asset Management
Services

• Depository institutions.
• Deposit insurance.
• Other providers.

Checking Account (Type 1)

• It can be accessed through checks and
debit card (ATM).
• It may or may not pay interest.
• Low fees are available at all depository
institutions.
• Its another name is demand deposit.

Types of Checking Accounts
• Interest-earning checking account (also
called negotiable order of withdrawal or
NOW).
• Tiered interest.
• Lifeline banking account.

Minimum Balance
Requirements

• Most of the accounts have a minimumbalance requirement.
• Usually, interest earned is not paid for a
month when the account falls below the

minimum.
• No minimum-balance requirement is
preferable.