Personal Finance and Banking Vocabulary

A set of vocabulary flashcards covering banking terms, account features, fees, and digital payment methods mentioned in the lecture notes.

ATM

An Automated Teller Machine used for electronic banking transactions like withdrawals and deposits.

Balance

The current amount of money available in a financial account.

Bank Statement

A monthly record provided by a bank that summarizes all transactions, including deposits, withdrawals, and fees.

Certificate of Deposit (CD)

A type of savings account with a fixed interest rate and a fixed date of withdrawal, often offering higher interest than standard savings.

Check

A written, dated, and signed instrument that directs a bank to pay a specific sum of money from an account to a payee.

Check Register

A document used of record and track all financial transactions, such as checks and deposits, to maintain an accurate account balance.

Compound Interest

Interest calculated on the initial principal and also on the accumulated interest of previous periods.

Credit card

A card issued by a financial institution that allows the holder to borrow funds to make purchases.

Debit card

A payment card that deducts money directly from a consumer's checking account for purchases.

Deposit

A sum of money placed into a bank account.

Direct Deposit

The electronic transfer of a payment, such as a paycheck, directly from the payer's account to the recipient's account.

Emergency Fund

A stash of money set aside to cover unexpected expenses or financial surprises.

FDIC Insurance

Federal Deposit Insurance Corporation protection that guarantees the safety of deposits in member banks.

Interest

The cost of borrowing money or the earnings received on saved money, typically expressed as a percentage.

Low Balance Alert

A notification sent to an account holder when their balance drops below a predetermined amount.

Maintenance Fee

A monthly fee charged by a financial institution to a customer for maintaining their account.

Minimum Balance

The minimum dollar amount a customer must maintain in an account to avoid fees or earn interest.

Mobile Deposit

A banking feature that allows users to deposit checks by taking a photo using a mobile device.

Online Bill Pay

A service that allows customers to pay bills electronically through their bank's website or app.

Overdraft Fee

A fee charged by a bank when a transaction exceeds the available balance in an account.

Unbanked

Individuals who do not use traditional banking services or do not have accounts at financial institutions.

Prepaid cards

Cards that are pre-loaded with a specific amount of money and used for transactions until the balance is exhausted.

Payroll cards

A type of card onto which an employer loads an employee's wages instead of issuing a paper check or direct deposit.

Digital wallets

Electronic apps that store payment information on a mobile device for making transactions.

Peer-to-peer (P2P) payment apps

Digital platforms that allow individuals to transfer funds directly to one another from their bank accounts or credit cards.