Nice one!

Answer: b) You can usually access your transaction account with a card linked to your account.

Transaction accounts are those that are designed for day-to-day things like groceries, rent and petrol. Savings accounts encourage you to put away money for the long term. As a result, many savings accounts don’t have transaction cards, making it easier to put your money away without dipping into it.

Spot on!

Answer: a) When you take out a new loan to pay off an existing one.

When you refinance your home loan, you look for a new loan to replace your existing one. You can refinance your loan with your existing lender, or look for a new loan with another lender. There are many reasons why you may want to refinance your home loan — perhaps you’re looking to restructure your debts, or just shopping for a better deal.

Bingo!

Answer: c) The value of your home, minus the amount you still owe on your loan.

In other words, equity is the difference between what your home is valued on the market, and the amount you have left to pay off. Generally, the more you pay off your home loan, the more you’ll increase your equity. You could use it to refinance your home loan, or use it as security to renovate, or even buy a second property.

Fantastic stuff!

Answer: c) When you earn interest on the interest already earned on your account balance.

Compound interest is a one of the easiest ways to grow your savings. When you have your money in a savings account, interest is calculated on your closing balance daily. Then, monthly, you’ll earn interest on that interest. The longer you save, and the more you keep depositing, the more compound interest you can earn!

Well done!

Answer: a) It can help you pay your home loan quicker by reducing the interest you pay.

It can help you pay your home loan quicker by reducing the interest you pay.

If you’re the right financial fit, an offset account can help to shave years off your home loan. As a type of savings or transaction account that’s linked to your home loan, the account balance can be offset against the daily balance of your loan. This means the transaction or savings account balance is subtracted from the home loan account balance you have to pay interest on.

Yes!

Answer: c) $19.

There are two elements to figuring out your monthly interest: your principal and your interest rate. The principal is the amount you have in your account, and the interest rate is the percentage of your principal that you’ll earn from the bank. If you’d like to work out yours, our Savings Calculator can help *.

Yippee!

Answer: a) A loan where there’s an asset used as collateral which the bank may take possession of and sell to recover the loan if you can’t repay it

Loans are generally secured or unsecured, meaning you have an asset to provide to the bank as collateral or you don’t. For example, personal loans, especially car loans are often offered as a secured loan. Where the loan is secured and if you default on the debt, the bank may take possession of the asset used as collateral to pay out the loan. As a plus, banks can sometimes offer lower interest rates on the loan because of the security of the collateral you offer.

Nailed it!

Answer: b) Your total balance, including pending transactions

A ‘current balance’ is the money in your account that includes pending transactions due to come out of your account or that haven’t been cleared yet. Funds that are pending aren’t available for withdrawal. For example, transactions made using payWave can take a few days to clear in your account. It also includes cheques that haven’t been cleared yet, or funds debited to your account that haven’t been processed yet. Your available balance, on the other hand, is the amount in your account that is available for withdrawal.

Good on ya!

Answer: d) Australian Securities Exchange

If you or someone you know bought or sold stock, most likely they’ve engaged with the Australian Securities Exchange (ASX). This is where companies list their stock for exchange, and sell it off to people, who then become investors of the company. People can then trade stock by buying and selling shares.

That’s correct!

Answer: a) By making purchases on your credit card

With some types of credit cards, every time you spend on certain transactions you could be earning rewards points. You may then be able to redeem them for things like household items, gift cards and even flights and accommodation. So if you have the financial discipline to use a credit card, you might be able to earn some sweet points using it even for everyday items such as groceries.

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