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A Strategy for Managing Cash Cash, check, credit card or an ATM are the most common payment choices. Common mistakes in managing cash include… Overspending from impulse buying and using credit cards. Not having enough liquid assets (cash and checking account) to pay current bills. Using savings or borrowing to pay for current expenses. Failing to put unneeded funds in an interest-earning savings account or investment plan. Types of Financial Services Savings. Time deposits in savings, CD’s. Payment services. Checking accounts are called demand deposits. Automatic payments. Borrowing for the short- or long-term. Other financial services. Insurance, investment, real estate purchases, tax assistance, and financial planning are additional services you may use. Types of Financial Services Asset management account. Also called a cash management account. Offered by brokers and financial institutions. Provides a complete financial services program for a single fee and includes... A minimum balance. A checking account and an ATM card. A credit card Online banking. Access to a variety of investments. or . Electronic Banking Services Direct deposit of paychecks and other regular income. Automatic payments transfer funds for savings or to pay bills. Deduct them from your register. ATM access to obtain cash, check account balances, and transfer funds - check out the fees. A debit card - takes money out of your account. Lost card liability $50-$500. Opportunity Costs of Financial Services Higher rate of return may be obtained at the cost of lower liquidity. Convenience of a 24-hour ATM should be considered against service fees. The “no fee” checking account with a $500 non-interest-bearing minimum balance means lost interest of nearly $400 at 6 percent compounded over 10 years. Changing Interest Rates and Decisions Related to Financial Services The prime rate is what banks charge large corporations. See . When interest rates are rising... Use long-term loans to bene