Consumer Mathematics: Savings and Investments

Flashcards covering key concepts from consumer mathematics related to savings and investments.

Savings

Part of our income that is set aside for emergencies and to meet short-term goals.

Types of Savings Accounts

Three main types are savings account, fixed deposit account, and current account.

Savings Account

Allows us to keep money in small sums, with interest determined by the bank and with no maturity date.

Fixed Deposit Account

An account that enables saving a sum of money for a fixed term, such as 3, 6, or 12 months, often with higher interest.

Interest Payment

The amount earned on deposits in a savings account, paid monthly.

Minimum Deposit

The lowest amount required to open a savings or fixed deposit account, set by the banking institution.

Account Holder Responsibilities

The ability to deposit or withdraw money anytime using an ATM, and check transactions through an account statement.

Savings Certificate

A document issued by the bank for a fixed deposit account that verifies the deposit.

Stable Political Situation

An external factor that can affect the return on investment (ROI).

Location Strategy

The strategic importance of a location in determining investment viability.