Banking

What is a credit union?

Not for profit financial institution (bank) for specific group

Debit card

Money is deducted from your account using a PIN

Best type of checking account for a high school student

No monthly fees, convenient, has mobile banking, no minimum balance

What is minimum balance checking?

You pay a service charge if your balance drops below a certain amount

Credit card

A plastic card that allows you to borrow money up to a certain limit for purchases and requires monthly repayment.

What is a fee?

Using another banks ATM , ex: internet banking

What is an overdraft?

If you write a check for more than you have in your account, your bank will charge you for this

Bounced check

A check that cannot be processed due to insufficient funds in the account. The bank typically returns the check unpaid and may charge a fee.

What does FDIC stand for?

Federal Deposit Insurance Corporation, insures up to $250,000

What is a deposit?

Money is put into your checking account

What is an endorsement on a check?

Signature included on the back of a check acknowledging that both parties have agreed to exchange the specific amount

Blank endorsement

it can be cashed, least amount of safety, just your name

Restrictive endorsement

Cannot be cashed, includes signature and “for deposit only”

Full endorsement

“Third party check” that you can give to someone else, who can endorse it and cash it, write “Pay to the order off ..”

What is an outstanding check?

There is a check that has been written but has not been cashed or deposited by the payee, it would not be in your account statement yet

What is a bank account statement?

this is the banks record of your transactions for the month, including checks paid, deposits, and service charges

3 advantages of mobile banking

• you have real-time awareness

• Check your bank balance at anytime

• Pay your bills and transfer money to other accounts

What does peer to peer payment mean?

This is a banking option thats makes convenient for you to pay your friends back when you go out