consumer ed. banking and saving vocab

FDIC Insured

Insures depositors up to $250,000 if a bank fails.

Checking accounts

Allows you to write checks, use a debit card, or transfer money electronically to make payments

Certified checks

Your personal check that the bank certifies (stamps and signs).

Payee

The person receiving the check or payment.

Payor

The person or business making the payment.

Cashier's check

A check written by the bank using its own funds.

Debit card

Is a bank card that deducts money from a checking account to pay for a purchase.

Overdraft

A check written, OR debit card used, for more money than your account contains

Overdraft protection

The bank will pay for transactions even if your checking account doesn’t have enough to cover the transaction.

ATM fee

Fee charged by the ATM machine

Endorsement

Signing the back of a check to help the bank verify that you are the correct recipient.

Check register

Place to immediately record all monetary transactions for a checking account

Bank reconciliation

The process of matching your checkbook register with the bank statement.

Credit union

Financial establishment that operates like a bank but is non-profit and is owned by its account holders

Electronic Funds Transfer (EFT)

Computer based system that enables you to move money from one account to another without writing a check or using cash.

Principal

The money you initially deposit into a savings account

Compound Interest

Interest paid on the original principal plus accumulated interest.

Money Market Account

A high-yield account where the interest rate changes over time.

Certificate of Deposit (CD)

A deposit into an account that earns a fixed interest rate for specified period of time.

Annual Percentage Yield (APY)

The actual interest rate an account pays per year

Direct Deposit

Your pay is deposited electronically into your bank account.

Early Withdrawal Penalty

Removing money from a CD account before the maturity date.