finance: checking and savings vocab

CERTIFICATE OF DEPOSIT (CD)

AN ACCOUNT INTO WHICH A SUM OF MONEY IS DEPOSITED FOR A SPECIFIED LENGTH OF TIME

CHECKING ACCOUNT

AN ACCOUNT AT A FINANCIAL INSTITUTION INTO WHICH MONEY IS DEPOSITED AND FROM WHICH CHECKS CAN BE WRITTEN FOR PURCHASES OR SERVICES

CREDIT UNION

A NOT-FOR-PROFIT FINANCIAL INSTITUTION THAT IS MEMBER-OWNED AND OPERATED AND IS LICENSED TO RECEIVE DEPOSITS AND ISSUE LOANS.

DEBIT CARD

AN AUTOMATED TELLER MACHINE (ATM) CARD THAT CAN BE USED TO PAY FOR GOODS AT STORES OR BUSINESSES, ONLINE, AND AT ATMS.

DEPOSIT

MONEY ADDED TO AN ACCOUNT.

DIRECT DEPOSIT

AN AUTOMATIC DEPOSIT TO YOUR ACCOUNT MADE BY YOUR EMPLOYER OR AN OUTSIDE AGENCY (E.G. A PENSION OR GOVERNMENT BENEFIT PAYMENT).

FEDERAL DEPOSIT INSURANCE CORP (FDIC)

A GOVERNMENT ORGANIZATION THAT INSURES CUSTOMERS’ BANK DEPOSITS UP TO $250,000 IF THE BANK FAILS.

INTEREST

MONEY PAID AT A PARTICULAR RATE FOR THE USE OF MONEY LENT, OR FOR DELAYING THE REPAYMENT OF A DEBT.

INTEREST RATE

THE ANNUAL PERCENTAGE PAID ON AN INTEREST-BEARING SAVINGS ACCOUNT OR CD, OR THE INTEREST CHARGED ON LOANS.

MOBILE BANKING

ACCESS TO YOUR ACCOUNT VIA YOUR SMARTPHONE OR TABLET.

MONEY MARKET ACCOUNT (MMA)

A HIGH-YIELD SAVINGS ACCOUNT THAT’S FDIC-INSURED UP TO $250,000.

NATIONAL CREDIT UNION ASSOCIATION (NCUA)

AN INDEPENDENT FEDERAL AGENCY THAT REGULATES, CHARTERS, AND SUPERVISES FEDERAL CREDIT UNIONS.

OVERDRAFT FEE

CHARGES BY FINANCIAL INSTITUTIONS TO THE ACCOUNT HOLDER WHEN THEY ACCOUNT HOLDER SPENDS MORE THAN WHAT THEY HAVE IN THEIR CHECKING ACCOUNT.

OVERDRAFT PROTECTION

AN ARRANGEMENT MADE BETWEEN YOU AND YOUR BANK THAT ALLOWS YOU TO WITHDRAW MORE THAN THE BALANCE IN YOUR ACCOUNT, WITHOUT INCURRING ANY PENALTIES.