Checking Accounts and Other Financial Options

Bank

A financial institution that receives deposits, issues loans, and handles money; including keeping it safe.

Credit Union

A financial institution that is member owned. These members having voting rights to elect

a Board of Directors.

CD (Certificate of Deposit)

An account into which a sum of money is deposited for a specified period of time. The money must remain untouched until the ____ matures.

Compound Interest

the interest you earn on interest gained

Debit Card

A card that can be used to pay for goods and almost instantly removes cash from your checking account.

Rule of 72

A formula to estimate the number of years required to double invested money.

Balancing a Checkbook

the process of comparing your bank statement to your personal records of withdrawals and deposits.

Overdraft Fees

Fees resulting from spending more money than is shown in your bank account.

Check Cashing Service

A business that cashes checks for people who don't use a regular bank

Traditional Savings Account

An low interest-bearing savings account option that is insured by the FDIC or NCUA, but certain types of withdrawals may be limited.

Bonds

Used by Individuals to lend money to a government or company at a certain interest rate for an amount of time (until maturity)

Stocks

A unit of ownership in a corporation that can be a risky or rewarding investment and may pay dividends.

Commodity

A natural resource that can be bought and sold, such as copper or coffee. (both starts with C!!)

FDIC

A federal agency that insures customers' bank deposits (like savings accounts) up to $250,000 if the bank fails.

NCUA

An federal agency that insures Credit Union accounts (including savings accounts) up to $250,000