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Important Update: Changes in FDIC Deposit Insurance Coverage

The FDIC deposit insurance rules have undergone a series of changes starting in the fall of 2008. As a result, certain previously published information related to FDIC insurance coverage may not reflect the current rules. For details about the changes, visit Changes in FDIC Deposit Insurance Coverage. For more information about FDIC insurance, go to www.fdic.gov/deposit/deposits/index.html or call toll-free 1-877-ASK-FDIC (1-877-275-3342). For the hearing-impaired, the number is 1-800-925-4618.

Spring 2005 - A Special Guide for Young Adults

Take Our "Financial Aptitude Test" — the F.A.T.
You don"t need a #2 pencil or a calculator to take our quiz, but you do need a good understanding of the information in this special report to get a good score. Think you're ready?

  1. It's always smart to send in the minimum payment due on a credit card bill each month and stretch out the card payments as long as possible instead of paying the bill in full. True or False?
  2. Your credit record (your history of paying debts and other bills) can be a factor when you apply for a loan or a credit card but cannot affect non-credit decisions, such as applications for insurance or an apartment. True or False?
  3. While one or two late payments on bills may not damage your credit record, making a habit of it will count against you. True or False?
  4. There's no harm in having many different credit cards, especially when the card companies offer free T-shirts and other special giveaways as incentives. The number of cards you carry won't affect your ability to get a loan; what matters is that you use the cards responsibly. True or False?
  5. A debit card may be a good alternative to a credit card for a young person because the money to pay for purchases is automatically deducted from a bank account, thus avoiding interest charges or debt problems. True or False?
  6. It makes no sense for young adults to put money aside for their retirement many years away. People in their 20s should focus entirely on meeting monthly expenses and saving for short-term goals (such as buying a home or starting a business) and not start saving for retirement until their 40s at the earliest. True or False?
  7. If you receive an e-mail from a company you've done business with asking you to update your records by re-entering your Social Security number or bank account numbers, it's safe to provide this information as long as the e-mail explains the reason for the request and shows the company's official logo. True or False?
  8. The best way to avoid a "bounced" check — that is, a check that gets rejected by your financial institution because you've overdrawn your account — is to keep your checkbook up to date and closely monitor your balance. Institutions do offer "overdraft protection" services but these programs come with their own costs.True or False?
  9. All checking accounts are pretty much the same in terms of features, fees, interest rates, opening balance requirements and so on. True or False?
  10. If you or your family has $100,000 or less on deposit at an FDIC-insured bank, and the bank fails, your money is completely safe. True or False?

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Last Updated 5/17/2005

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