Identify two cash management products and provide a short description of each?

Answer 1

When using interest-earning checking accounts you will have a higher minimum balance than when using regular checking accounts. Since you will have a minimum balance you have to make sure you do not let your account get under that amount. If it does you interest rate may be reduced or eliminated and you may have to pay a fee. You will have benefits through interest-earning checking accounts though like debit cards and unlimited check writing.

CDs are a savings alternative for cash management. You would use CDs when you want a savings account with a time stamp or maturity date. For example, if you have a baby and you want to save money for when the baby is eighteen to use for college you could open a CD for them. The child grows up and graduates but decides they do not want to go to college right away. The maturity date is set for a month after he/she turns eighteen. The child needs to remove this money before then whether they are talked into going to college or it is used for something else. If they do not take the money out of the bank the maturity date could be moved to another eighteen years and the child will have to wait to remove it.

I have experience with regular checking and savings accounts, debit cards, certified checks, ATM's, automatic deposits of paychecks, and money orders. Every job I have had has required me to have automatic deposits of paychecks (also known as direct deposit) which save me from having to stand in lines at the bank waiting to deposit my check. Debit cards are great to have when you do not have any cash on you from going to the ATM. You can use them to make credit or debit purchases. Beware that if you do use the credit option the purchase will not immediately show up on your account so your available balance may not be correct.