SPF Vocab. on Banking/Checking

Bank

brick and mortar building, commonly found

Credit Union

controlled by members, not-for-profit

Online Bank

banks that do not have a location, only mobile

FDIC/NCUA

Federal Deposit Insurance Corporation, National Credit Union Administration

Check Cashing

allows people without banking counts to cash checks

Payday Loan

a small amount of money that is lended to someone to help them make it through their next paycheck, causes repeating debt

ATM

electronic banking account that allows basic transactions without having to go into a bank

Overdraft Protection

a service offered by banks to help cover transactions when there isn’t enough money in your checking account

Maintenance Fees

a fee that is used to cover services and protection of property, in this case money in a bank

Bank Statement

an official monthly document that shows all of your transactions and deposits within your account

Mobile Banking Alerts

notifications that inform you about your account activity

Traditional Savings Account

a bank account designed to hold your money and allow you to build a decent amount of interest the longer your money sits in the account

Certificate of Deposit (CD)

an account that you deposit money into it for a certain amount of time in exchange for a fixed interest rate, you have limited access to the funds while it is in holding

Money Market Account

offers much higher interest rates, it is a hybrid between a checking and savings account

Interest Rate

a percent of the original amount, the cost of borrowing money

Compounding Interest

you earn interest, the longer your money is in the bank the more interest you gain meaning you get more money