Savings Accounts

Question 14 • SHS Alt Personal Finance - 2021

What does it mean for a savings account to have a minimum balance?

Answer

If you do not keep at least that much money in the account, you will be assessed fees.

If the amount of money you have in the account drops below the minimum, the interest rate will increase to replenish your savings to the minimum.

You must have the minimum amount of money in a separate account before you are allowed to open a savings account.

You must deposit that much money into the account every month or your account will be closed.

Explanation

A minimum balance is the least amount of money you must keep in the savings account to avoid possible fees. If your balance falls below that amount, the bank may charge a fee. It does not mean your interest rate will rise or that you must make a deposit of that amount every month.

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